FxWirePro: Chinese yuan trades marginally lower after trade balance data

• USD/CNY is currently trading around 6.6422 marks.
   
• It made intraday high at 6.6431 and low at 6.6353 levels.
   
• Intraday bias remains slightly bullish for the moment.
   
• A sustained close above 6.6380 marks will test key resistances at 6.6464, 6.6513, 6.6615, 6.6673, 6.6735 and 6.6964 marks respectively.
   
• Alternatively, a daily close below 6.6380 will drag the parity down towards key supports at 6.6210, 6.6039, 6.5839, 6.5710, 6.5635, 6.5456 and 6.5371 marks respectively.
   
• PBOC sets yuan mid-point at 6.6277/ dlr vs last close 6.6395.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.
   
• China Oct exports y/y decrease to 6.9 % (forecast 7.2 %) vs previous 8.1 %.
   
• China Oct imports y/y decrease to 17.2 % (forecast 16.0 %) vs previous 18.6 % (revised from 18.7 %).
   
• China Oct trade balance usd increase to 38.17 bln usd (forecast 39.50 bln usd) vs previous 28.61 bln usd (revised from 28.47 bln usd).

We prefer to take long position in USD/CNY around 6.6375, stop loss at 6.6210 and target of 6.6615.

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