FxWirePro: Chinese yuan depreciates as industrial production, retail sales data miss expectations

• USD/CNY is currently trading around 6.8920 marks.
   
• It made intraday high at 6.8932 and low at 6.8807 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.8797 marks.
   
• A sustained close above 6.8797 marks will test key resistances at 6.8975, 6.9210, 6.9396, 6.9525 and 6.9620 marks respectively.
   
• Alternatively, a daily close below 6.8797 will drag the parity down towards key supports at 6.8525, 6.8348, 6.8210, 6.8095, 6.8020 and 6.7864 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
   
• PBOC sets yuan mid-point at 6.8750 / dlr vs last close 6.8835.
   
• China Nov 2018 urban investment (ytd)yy increase to 5.9 % (forecast 5.8 %) vs previous 5.7 %.
   
• China Nov 2018 industrial output yy decrease to 5.4 % (forecast 5.9 %) vs previous 5.9 %.
   
• China Nov 2018 retail sales yy decrease to 8.1 % (forecast 8.8 %) vs previous 8.6 %.

We prefer to take long position on USD/CNY around 6.8850, stop loss at 6.8720 and target of 6.9210.