FxWirePro: USD/ CNY uptrend resumes rise towards key fibo at 7.085

• USD/ CNY strengthened  on Monday  as China's yuan   weakened  as China's broad economic stimulus promises made over the weekend failed to inspire investors across the globe.

• The Chinese government announced plans on Saturday to increase public debt and stimulate economic growth by strengthening the real estate industry.  

• The yuan was further weighed down by the softer-than-expected consumer inflation data, which marked the lowest level since June.

• At GMT 14:53,the dollar   was up 0.35 % at 7.083 against Chinese Yuan.

•Technical signals are bearish  as RSI is   trending lower, moving averages are trending down

•  Immediate resistance is located at 7.085 (38.2%fib), any close above will push the pair towards 7.102 (Higher BB).

• Support is seen at 7.065(50%fib) and break below could take the pair towards 7.046 (61.8%fib).

Recommendation: Good to buy  around 7.070 with stop loss of 7.020  and target price of 7.105