FxWirePro: Chinese yuan strengthens after China president Xi’s comment on trade

• USD/CNY is currently trading around 6.2940 marks.
   
• It made intraday high at 6.3067 and low at 6.2937 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.3210 marks.
   
• A sustained close above 6.3034 marks will test key resistances at 6.3210, 6.3320, 6.3515, 6.3625, 6.3855 and 6.4017 marks respectively.
   
• Alternatively, a daily close below 6.3034 will drag the parity down towards key supports at 6.2852, 6.2728, 6.2584, 6.2419, 6.2322, 6.2196 and 6.1907 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 6.3071 / dlr vs last close 6.3126.
   
• China's president Xi - World should promote free trade.
   
• China's president Xi - China will deepen supply-side reforms, explore free-trade ports.
   
• China's president Xi - China's door for opening will not close, but will only open wider.
   
• China's president Xi - China will expand business scope for foreign-funded firms.
   
• China's president Xi - China will raise foreign ownership limits in autos sector.
   
• China's president Xi - China will lower import tariffs for autos and other products.

We prefer to take short position on USD/CNY around 6.3010, stop loss 6.3210 and target of 6.2728/6.2584.

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