FxWirePro: Chinese yaun strengthens noticeably against U.S. dollar, hits fresh 7-month high at 6.6894

• USD/CNY is currently trading around 6.7050 marks.
   
• It made intraday high at 6.7259 and low at 6.6894 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.7510 marks.
   
• A sustained close above 6.7180 marks will test key resistances at 6.7422, 6.7510, 6.7778 and 6.8072 marks respectively.
   
• Alternatively, a daily close below 6.7180 will drag the parity down towards key supports at 6.6722, 6.6650, 6.6540 and 6.62 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• PBOC sets yuan mid-point at 6.7220 / dlr vs last close 6.7171.
   
• China Central bank sets yuan mid-point at strongest level since Feb1.
   
• U.S., China drafting six memorandums of understanding on key structural issues in trade dispute.
   
• Draft memos cover intellectual property, services, tech transfer, agriculture, currency, non-tariff barrier.
   
• U.S., China negotiators also looking at 10 - item list of shorter-term measures to address trade imbalance.

We prefer to take short position on USD/CNY around 6.7200, stop loss at 6.7510 and target of 6.6650.