FxWirePro: USD/CNY hovers around 6.36 mark, downside limited

• USD/CNY is currently trading around 6.3591 marks.
   
• It made intraday high at 6.3705 and low at 6.3556 levels.
   
• Intraday bias remains neutral till the time pair holds key resistance at 6.3705 mark.
   
• A sustained close above 6.3705 marks will test key resistances at 6.3821, 6.4017, 6.4178 and 6.4329 marks respectively.
   
• Alternatively, a daily close below 6.3705 will drag the parity down towards key supports at 6.3510, 6.3313, 6.3210, 6.3000 and 6.2892 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart. Current downside movement is short term trend correction only.
   
• PBOC sets yuan mid-point at 6.3679 / dlr vs last close 6.3705.
   
• China Jan-April FDI +0.1 pct y/y to 286.78 bln yuan.
   
• China April FDI -1.1 pct y/y to 59.24 bln yuan.
   
• China Jan-April non-financial outbound direct investment +34.9 pct y/y to $35.58 bln.

We prefer to take long position on USD/CNY around 6.3590, stop loss 6.3510 and target of 6.3821/6.4017.

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