FxWirePro: Chinese yuan appreciates on robust Caixin services PMI data

• USD/CNY is currently trading around 6.3470 marks.
   
• It made intraday high at 6.3519 and low at 6.3420 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.3609 mark.
   
• A sustained close above 6.3609 marks will test key resistances at 6.3738, 6.3855 and 6.4017 marks respectively.
   
• Alternatively, a daily close below 6.3536 will drag the parity down towards key supports at 6.3332, 6.3210, 6.3000 and 6.2892 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• PBOC sets yuan mid-point at 6.3521 / dlr vs last close 6.3500.
   
• China April Caixin services PMI increase to 52.9 vs previous 52.3.

We prefer to take short position on USD/CNY around 6.3490, stop loss 6.3610 and target of 6.3210.

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