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• USD/CNY eased on Thursday as the dollar softened as investors bracing for a legal battle over President Donald Trump’s tariff agenda after a U.S. trade court blocked most of the proposed levies on Wednesday.
• The U.S. dollar also weakened official data revealed the economy contracted by 0.2% in the first quarter. The unexpected decline raised concerns about the strength of the economic recovery..
• Meanwhile ,the number of new unemployment claims in the U.S. rose last week, surpassing expectations and signaling potential weakness in the labor market.
• At GMT 14:37, the dollar was down 0.11% to 7.185 against the Chinese Yuan.
• Immediate resistance is located at 7.197(38.2%fib), any close above will push the pair towards 7.216(50%fib)
• Support is seen at 7.175(23.6%fib) and break below could take the pair towards 7.165 (Lower BB).
Recommendation: Good to sell around 7.190 with stop loss of 7.260 and target price of 7.120
