FxWirePro: Chinese yuan appreciates on the back of higher than expected Caixin services PMI data

• USD/CNY is currently trading around 6.6140 marks.
   
• It made intraday high at 6.6197 and low at 6.6131 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.6210 mark.
   
• A sustained close above 6.6210 marks will test key resistances at 6.6326, 6.6405, 6.6464, 6.6510, 6.6615, 6.6673, 6.6735 and 6.6964 marks respectively.
   
• Alternatively, a daily close below 6.6184 will drag the parity down towards key supports at 6.6055, 6.5839, 6.5710, 6.5635, 6.5456 and 6.5371 marks respectively.
   
• PBOC sets yuan mid-point at 6.6113/ dlr vs last close 6.6166.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• China Nov 2017 Caixin services PMI increase to 51.9 vs previous 51.2.

We prefer to take short position on USD/CNY around 6.6170, stop loss 6.6210 and target of 6.6055/6.5710.

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