FxWirePro: Chinese yuan erases previous loss against U.S. dollar, good to sell on rallies
USD/CNY is currently trading around 6.7160 marks It made intraday high at 6.7390 and low at 6.7153 levels. Intraday bias remains bearish till the time pair holds key resistance at 6.7422 mark. A sustained close above 6.7…
It made intraday high at 6.7390 and low at 6.7153 levels.
Intraday bias remains bearish till the time pair holds key resistance at 6.7422 mark.
A sustained close above 6.7380 marks will test key resistances at 6.7422, 6.7510, 6.7778 and 6.8072 marks respectively.
Alternatively, a daily close below 6.7380 will drag the parity down towards key supports at 6.7150, 6.70, 6.6853, 6.6650, 6.6540 and 6.6234 marks respectively.
Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
PBOC sets yuan mid-point at 6.7335 / dlr vs last close 6.7398.
We prefer to take short position on USD/CNY around 6.7250, stop loss at 6.7422 and target of 6.70/6.6853.
