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.…
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.
