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

• USD/CNY is currently trading around 6.5274 marks.
   
• It made intraday high at 6.5360 and low at 6.5150 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.5566 mark.
   
• A sustained close above 6.5268 marks will test key resistances at 6.5566, 6.5887, 6.6013, 6.6227, 6.6673, 6.6735, 6.6814, 6.7055, 6.7206, 6.7289 and 6.7373 marks respectively.
   
• Alternatively, a daily close below 6.5268 will drag the parity down towards key supports at 6.5089, 6.4910 and 6.4538 marks respectively.
   
• PBOC sets yuan mid-point at 6.5370/ dlr vs last close 6.5320.
   
• China sets yuan mid-point at strongest level since May 18, 2016.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• China August Caixin services PMI increase to 52.7 vs previous 51.5.

We prefer to take short position in USD/CNY only below 6.5150, stop loss at 6.5566 and target of 6.4910/6.4775.

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