FxWirePro: Chinese yuan depreciates as Caixin manufacturing PMI data misses expectations

• USD/CNY is currently trading around 6.9662 marks.
   
• It made intraday high at 6.9738 and low at 6.9601 levels.
   
• Intraday bias remains slightly bullish till the time pair holds key support at 6.9591 mark.
   
• A sustained close above 6.9591 marks will test key resistances at 6.9867, 7.0168, 7.0388, 7.07 and 7.0920 marks respectively.
   
• Alternatively, a daily close below 6.9591 will drag the parity down towards key supports at 6.9525, 6.9297, 6.88 and 6.8662 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• China’s Caixin manufacturing PMI stands at 51.5 vs expected 51.7 pct (previous 51.8).

We prefer to take short position on USD/CNY only below 6.9590, stop loss at 6.9867 and target of 6.9525/6.9297.