FxWirePro: Chinese yuan depreciates on the back of lower than expected Caixin services PMI data

• USD/CNY is currently trading around 6.9114 marks.
   
• It made intraday high at 6.9138 and low at 6.9070 levels.
   
• Intraday bias remains neutral till the time pair holds key support at 6.8976 mark.
   
• A sustained close above 6.9181 marks will test key resistances at 6.9248, 6.94 and 6.9648 marks respectively.
   
• Alternatively, a daily close below 6.8979 will drag the parity down towards key supports at 6.8628, 6.8525, 6.8210, 6.80 and 6.7813 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 6.8903/ dlr vs last close 6.9083.
   
• China May 2019 Caixin services PMI decrease to 52.7 vs previous 54.5.
   
• China Caixin/markit May composite PMI (services and manufacturing) falls to 51.5 vs April's 52.7.

We prefer to take long position on USD/CNY only above 6.92, stop loss 6.8976 and target of 6.9548.