FxWirePro: Chinese yuan falls despite higher than expected Caixin services PMI data
USD/CNY is currently trading around 6.6152 marks. It made intraday high at 6.6166 and low at 6.6039 levels. Intraday bias remains slightly bullish till the time pair holds key support at 6.5839 mark. A sustained close ab…
It made intraday high at 6.6166 and low at 6.6039 levels.
Intraday bias remains slightly bullish till the time pair holds key support at 6.5839 mark.
A sustained close above 6.6074 marks will test key resistances at 6.6210, 6.6373, 6.6464, 6.6513, 6.6615, 6.6673, 6.6735 and 6.6964 marks respectively.
Alternatively, a daily close below 6.6074 will drag the parity down towards key supports at 6.5839, 6.5710, 6.5635, 6.5456 and 6.5371 marks respectively.
PBOC sets yuan mid-point at 6.6072/ dlr vs last close 6.6090.
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 Oct Caixin services PMI increase to 51.2 vs previous 50.6.
We prefer to take long position in USD/CNY around 6.6120, stop loss at 6.5839 and target of 6.7373.
