FxWirePro: Chinese yuan appreciates on robust CPI data

• USD/CNY is currently trading around 6.8730 marks.
   
• It made intraday high at 6.8867 and low at 6.8727 levels.
   
• Intraday bias remains bearish for the moment.
   
• A sustained close above 6.8775 marks will test key resistances at 6.8916, 6.9080, 6.9162, 6.9336, 6.9496, 6.9615, 6.9778 and 6.9883 marks respectively.
   
• Alternatively, a daily close below 6.8775 will drag the parity down towards key supports at 6.8665, 6.8550, 6.8449, 6.8333, 6.8298, 6.8090 and 6.7769 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 6.8806/dollar vs last close 6.8780
   
• China’s January PPI yy increase to 6.9 % (forecast 6.3 %) vs previous 5.5 %.
   
• China’s January CPI yy increase to 2.5 % (forecast 2.4 %) vs previous 2.1 %.
   
• China’s January CPI mm increase to 1.0 % (forecast 0.7 %) vs previous 0.2 %.                                            

We prefer to take short position in USD/CNY around 6.8750, stop loss at 6.8916 and target of 6.8510