FxWirePro: Chinese yuan depreciates on the back of lower than exceptect industrial production, retail sales data

• USD/CNY is currently trading around 6.3971 marks.
   
• It made intraday high at 6.3974 and low at 6.3928 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.3837 marks.
   
• A sustained close above 6.3959 marks will test key resistances at 6.4110, 6.4175, 6.4278, 6.4329, 6.4525 and 6.4730 marks respectively.
   
• Alternatively, a daily close below 6.3959 will drag the parity down towards key supports at 6.3837, 6.3750, 6.3654, 6.3510, 6.3313 and 6.3210 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 6.3962 / dlr vs last close 6.4007.
   
• China May industrial output yy decrease to 6.8 % (forecast 6.9 %) vs previous 7 %.
   
• China May retail sales yy decrease to 8.5 % (forecast 9.6 %) vs previous 9.4 %.
   
• China May urban investment (ytd)yy decrease to 6.1 % (forecast 7 %) vs previous 7 %.

We prefer to take long position on USD/CNY around 6.3920, stop loss 6.3837 and target of 6.4110/6.4228/6.4329.