FxWirePro: Chinese yuan falls as house price data fails to meet expectations

• USD/CNY is currently trading around 6.6783 marks.
   
• It made intraday high at 6.6784 and low at 6.6729 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.6675 mark.
   
• A sustained close above 6.6754 marks will test key resistances at 6.6899, 6.7055, 6.7206, 6.7289, 6.7373, 6.7486, 6.7529, 6.7668 and 6.7776 marks respectively.
   
• Alternatively, a daily close below 6.6754 will drag the parity down towards key supports at 6.6675, 6.6449, 6.6378 and 6.6220 marks respectively.
   
• PBOC sets yuan mid-point at 6.6744/ dlr vs last close 6.6735.
   
• 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.
   
• China’s July house prices y/y decrease to 9.7 % vs previous 10.2 %.
   
• All China July year-on-year home prices growth slowest since August 2016.

We prefer to take long position in USD/CNY around 6.6730, stop loss at 6.6650 and target of 6.7055.

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