FxWirePro: Chinese yuan trades marginally lower after trade balance data, PBOC sets yuan mid-point at 6.7744

• USD/CNY is currently trading around 6.7646 marks.
   
• It made intraday high at 6.7704 and low at 6.7581 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.7500 marks.
   
• A sustained close above 6.7597 marks will test key resistances at 6.7740, 6.7887, 6.8072, 6.8210, 6.8525 and 6.8886 marks respectively.
   
• Alternatively, a daily close below 6.7597 will drag the parity down towards key supports at 6.7510, 6.7422, 6.7180, 6.7050, 6.6722 and 6.6422 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 6.7744 / dlr vs last close 6.7600.
   
• China Jan 2019 yuan-denominated trade balance decrease to 271.16 cny vs previous 394.99 cny.
   
• China Jan 2019 yuan-denominated exports increase to 13.9 % vs previous 0.2 %.
• China Jan 2019 yuan-
  denominated imports increase to 2.9 % vs previous -3.1 %.
   
• China Jan 2019 trade balance usd decrease to 39.16 usd (forecast 33.5 usd) vs previous 57.06 usd.

We prefer to take short position on USD/CNY only below 6.7510, stop loss at 6.7740 and target of 6.7422/6.7180.