Chinese Yuan falls after PBoC cut reserve requirement ratio

• USD/CNY is currently supported above 6.55 levels.
   
• It made intraday high at 6.5515 and low at 6.5369 levels.
   
• Today PBoC cuts banks' reserve requirement reserve ratio by 50 bps to 17%.
   
• RRR cut will ensure ample liquidity in system and appropriate growth in credit, money supply.
   
• China's Yuan hits 3-week low of 6.5555 Yuan per dollar in offshore trade after reserve requirement cut.
   
• Intraday bias remains bullish for the moment.
   
• On the top side key resistance falls at 6.58 levels.
   
• In addition 20, 30 and 55D EMA heads upside, which signals bullish bias.
   
• Initial support and resistance levels are seen at 6.5247 and 6.5660 levels.

We prefer to take long position in USD/CNY around 6.55, stop loss 6.5370 and target 6.5789 levels.