- USD/CNY is currently trading around 6.8367 marks.
- It made intraday high at 6.8441 and low at 6.8300 levels.
- Intraday bias remains bullish till the time pair holds key support at 6.7980 marks.
- A sustained close above 6.8420 marks will test key resistances at 6.8557, 6.8774 and 6.8938 marks respectively.
- Alternatively, a daily close below 6.8299 will drag the parity down towards key supports at 6.7980, 6.7864, 6.7624, 6.7510 and 6.7160 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
- PBOC sets yuan mid-point at 6.8347 / dlr vs last close 6.8310.
- China Aug 2018 Caixin manufacturing PMI final decrease to 50.6 (forecast 50.6) vs previous 50.8.
We prefer to take long position on USD/CNY only above 6.8470, stop loss at 6.8300 and target of 6.8774.
