FxWirePro: Chinese yuan fails to find support above 7.04 mark, good to sell on rallies

• USD/CNY is currently trading around 7.0280 marks.
   
• It made intraday high at 7.0363 and low at 7.0252 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 7.0416 mark.
   
• A sustained close above 7.0388 marks will test key resistances at 7.0540, 7.07 and 7.0920 marks respectively.
   
• Alternatively, a daily close below 7.0262 will drag the parity down towards key supports at 7.0180, 7.0074, 6.9765, 6.9525, 6.9297 and 6.88 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.

We prefer to take short position on USD/CNY around 7.0320, stop loss at 7.0420 and target of 7.0180/7.0074.