Chinese yuan erases previous gain against U.S. dollar, bias remains slightly bullish

• USD/CNY is currently trading around 6.8954 marks.
  
• It made intraday high at 6.8978 and low at 6.8835 levels.
  
• Intraday bias remains bullish till the time pair holds key support at 6.8835 mark.
  
• A sustained close above 6.8835 marks will test key resistances at 6.9049, 6.9268, 6.9540, 6.97, 6.9867, 6.9957, 7.0168, 7.0388, 7.07 and 7.0920 marks respectively.
  
• Alternatively, a daily close below 6.8835 will drag the parity down towards key supports at 6.8658, 6.84 and 6.8222 marks respectively.
  
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.

We prefer to take long position on USD/CNY around 6.89, stop loss at 6.8835 and target of 6.9049/6.9268.