FxWirePro: USD/CNY hits 3-week high as safe-haven demand lifts dollar

• USD/CNY firmed to hit three week high  on Friday as  yuan  slipped as the intensifying Middle East conflict fuelled safe-haven demand for the greenback and pressured non-dollar currencies.

•The dollar rose toward multi-month highs on Friday as investors sought safety amid escalating Middle East tensions and fading hopes of de-escalation.

• Donald Trump said he would extend the pause on strikes against Iran’s energy facilities into April, citing “very well” talks, but Iran rejected the proposal as one-sided and unfair..

•Prior to the market's opening on Friday, the PBOC set the midpoint   at 6.9141 per dollar, the weakest fix since March 9.

• Despite slight weakness, the yuan remains among the top-performing emerging market currencies since the Iran war began in late February.

•  Immediate resistance is located at 6.916(Higher BB), any close above will push the pair towards 6.927(23.6%fib)

• Support is seen at 6.905(38.2%fib) and break below could take the pair towards 6.892(SMA20).

Recommendation: Good to buy around 6.910, with stop loss of 6.900 and target price of 6.930