- USD/CNY is currently trading around 6.9681 marks.
- It made intraday high at 6.9756 and low at 6.9642 levels.
- Intraday bias remains slightly bearish for the moment.
- A sustained close above 6.9730 marks will test key resistances at 6.9768, 6.9850, 6.9929 and 6.9980 marks respectively.
- Alternatively, a daily close below 6.9730 will drag the parity down towards key supports at 6.9592, 6.9396, 6.9210, 6.8898, 6.8670, 6.8420 and 6.8215 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
- China Oct 2018 Caixin manufacturing PMI final increase to 50.1 (forecast 49.9) vs previous 50.
- PBOC sets yuan mid-point at 6.9670 / dlr vs last close 6.9740.
We prefer to take short position on USD/CNY only below 6.9592, stop loss at 6.9762 and target of 6.9396/6.9210.
