FxWirePro: Chinese yuan trades slightly lower as CPI data misses expectations

• USD/CNY is currently trading around 6.2837 marks.
   
• It made intraday high at 6.2848 and low at 6.2797 levels.
   
• Intraday bias remains slightly bullish till the time pair holds key support at 6.2784 marks.
   
• A sustained close above 6.2807 marks will test key resistances at 6.2898, 6.3068, 6.3158, 6.3210, 6.3320, 6.3515, 6.3625, 6.3855 and 6.4017 marks respectively.
   
• Alternatively, a daily close below 6.2807 will drag the parity down towards key supports at 6.2784, 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. Current upside movement is short term trend correction only.
   
• PBOC sets yuan mid-point at 6.2911 / dlr vs last close 6.2810.
   
• China March CPI y/y decrease to 2.1 % (forecast 2.6 %) vs previous 2.9 %.
   
• China March ppi y/y decrease to 3.1 % (forecast 3.2 %) vs previous 3.7 %.
   
• China Mar CPI m/m decrease to -1.1 % (forecast -0.5 %) vs previous 1.2 %.

We prefer to take long position on USD/CNY around 6.2820, stop loss 6.2728 and target of 6.3068/6.3158.

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