FxWirePro: Chinese Yuan gains against U.S. dollar as CPI data meets expectations
USD/CNY is currently trading around 6.7697 marks. It made intraday high at 6.7845and low at 6.7538 levels. Intraday bias remains bearish till the time pair holds key resistance at 6.7845 marks. On the top side, a sustain…
It made intraday high at 6.7845and low at 6.7538 levels.
Intraday bias remains bearish till the time pair holds key resistance at 6.7845 marks.
On the top side, a sustained close above 6.7845 marks will test key resistances at 6.8025 and 6.8158 marks respectively.
Alternatively, a daily close below 6.7540 will drag the parity down towards key supports at 6.7439, 6.7370, 6.7288, 6.7180 and 6.7055.
PBOC sets Yuan mid-point at 6.7832/ dollar vs last close 6.7838.
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.
China October CPI Y/Y increases to 2.1 % (forecast 2.1 %) vs previous 1.9 %.
China October CPI m/m decrease to -0.1 % (forecast 0.0 %) vs previous 0.7 %.
We prefer to take long position in USD/CNY around 6.7620, stop loss at 6.7540 and target of 6.7845/6.8025.
