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• USD/CNY recovered from a one-month low on Wednesday as the dollar gained some traction following President Donald Trump's hint at potential new tariffs on Chinese imports.
• Trump said on Tuesday that his administration is considering a 10% tariff on Chinese imports due to fentanyl being sent from China to the U.S. via Mexico and Canada.
• Trump reiterated his tariff threats in a White House statement, a day after taking office without the immediate implementation of the tariffs he had pledged during his campaign.
• At GMT 06.21,the dollar was up 0.26% at 7.280 against Chinese Yuan .
• Immediate resistance is located at 7.284(Dec 16th high), any close above will push the pair towards 7.296(38.2%fib).
• Support is seen at 7.268(50%fib) and break below could take the pair towards 7.241(61.8%fib).
Recommendation: Good to buy around 7.270 with stop loss of 7.200 and target price of 7.310
