FxWirePro: Chinese yuan falls despite higher than expected Caixin services PMI data

• USD/CNY is currently trading around 6.5074 marks.
   
• It made intraday high at 6.5092 and low at 6.5009 levels.
   
• Intraday bias remains slightly bullish till the time pair holds key support at 6.4909 mark.
   
• A sustained close above 6.5009 marks will test key resistances at 6.5333, 6.5585, 6.5749, 6.6050 and 6.6210 marks respectively.
   
• Alternatively, a daily close below 6.5009 will drag the parity down towards key supports at 6.4772, 6.4535, 6.4426 and 6.4355 marks respectively.
   
• PBOC sets yuan mid-point at 6.5043/ dlr vs last close 6.5005.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• China December Caixin services PMI increase to 53.9 vs previous 51.9.

We prefer to take short position on USD/CNY only below 6.5009, stop loss 6.5333 and target of 6.4772.

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