• USD/CNY steadied on Monday as the Chinese yuan weakened, impacted by escalating trade tensions between the world’s two largest economies after reciprocal tariffs on each other’s goods.
• China, hit by U.S. tariffs over 50%, retaliated on Friday with extra levies on U.S. imports, while global markets watch closely for any moves by Beijing to devalue its currency.
• Trump showed no signs of backing down from his tariff plans on Sunday, prompting investors worldwide to flock to safe-haven currencies like the yen and Swiss franc on Monday.
• With U.S. tariffs set to affect nearly all Chinese exports at rates of at least 54%, the outlook for China's trade balance remains uncertain.
• Immediate resistance is located at 7.312(38.2%fib), any close above will push the pair towards 7.332(23.6%fib)
• Support is seen at 7.295(50%fib) and break below could take the pair towards 7.280(61.8%fib).
Recommendation: Good to buy around 7.300, with stop loss of 7.220 and target price of 7.370
