FxWirePro: Chinese yuan trades marginally lower despite robust trade balance data

• USD/CNY is currently trading around 6.3254 marks.
   
• It made intraday high at 6.3326 and low at 6.3229 levels.
   
• Intraday bias remains slightly bullish till the time pair holds key support at 6.3100 mark.
   
• A sustained close above 6.3225 marks will test key resistances at 6.3495, 6.3625, 6.3855 and 6.4017 marks respectively.
   
• Alternatively, a daily close below 6.3225 will drag the parity down towards key supports at 6.3100, 6.2942, 6.2827, 6.2584, 6.2322, 6.2196 and 6.1907 marks respectively.
   
• PBOC sets yuan mid-point at 6.3239 / dlr.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• China Feb trade balance USD increase to 33.74 bln us (forecast 0.6 bln us) vs previous 20.35 bln us (revised from 20.34 bln us).
   
• China Feb imports y/y decrease to 6.3 % (forecast 9.7 %) vs previous 36.9 %.
   
• China Feb exports y/y increase to 44.5 % (forecast 13.6 %) vs previous 11.1 %.

We prefer to take short position on USD/CNY only below 6.3100, stop loss at 6.3495 and target of 6.2942/6.2584.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest