FxWirePro: Chinese yuan erases previous loss against U.S. dollar, bias remains bearish
USD/CNY is currently trading around 6.8709 marks. It made intraday high at 6.8805 and low at 6.8675 levels. Intraday bias remains bearish till the time pair holds key resistance at 6.8811 mark. A sustained close above 6.…
It made intraday high at 6.8805 and low at 6.8675 levels.
Intraday bias remains bearish till the time pair holds key resistance at 6.8811 mark.
A sustained close above 6.8811 marks will test key resistances at 6.90, 6.9150, 6.9297, 6.94, 6.9548 and 6.9750 marks respectively.
Alternatively, a daily close below 6.8811 will drag the parity down towards key supports at 6.8486, 6.8331, 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. Current downside movement is short term trend correction only.
We prefer to take short position on USD/CNY around 6.8720, stop loss at 6.8820 and target of 6.8486.
