FxWirePro: USD/CNY holds near fourteen month high, scope for further upside

• USD/CNY held near fourteen month high   on Monday as  Chinese  yuan was weighed down by widening yield differential between the U.S. and China bond  .

• The gap between China's benchmark 10-year government bond yield and the U.S. 10-year yield has reached its widest level in 24 years.

• Expectations for a slower pace of interest rate cuts by the Federal Reserve next year have bolstered Treasury yields, increasing the gap between them and Chinese bond yields.

• At GMT 06.40,the dollar was up 0.02% at 7.298 against Chinese Yuan .

 •  Immediate resistance is located at 7.301(23.6%fib), any close above will push the pair towards 7.313(Higher BB)

• Support is seen at 7.293(38.2%fib) and break below could take the pair towards 7.286(50%fib).

Recommendation: Good to buy around  7.295 with stop loss of 7.240  and target price of 7.340