- USD/CNY is currently trading around 6.4465 marks.
- It made intraday high at 6.4478 and low at 6.4378 levels.
- Intraday bias remains bullish till the time pair holds key support at 6.4378 marks.
- A sustained close above 6.4378 marks will test key resistances at 6.4525, 6.4730 and 6.4910 marks respectively.
- Alternatively, a daily close below 6.4378 will drag the parity down towards key supports at 6.4095, 6.4017, 6.3837, 6.3750, 6.3654 and 6.3510 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
- PBOC sets yuan mid-point at 6.4235 / dlr vs last close 6.4370.
- China Central bank leaves interest rates unchanged on reverse repo and MLF loans.
- Trump says if China increases tariffs again, U.S. will respond with tariffs on another $200 billion in Chinese goods.
- China commerce ministry says U.S. trade war will hurt companies and people of both U.S. and China.
- China commerce ministry says if U.S. publishes additional imports tariff list, china will have to adopt comprehensive measures to fight back firmly.
We prefer to take long position on USD/CNY around 6.4370, stop loss 6.4125 and target of 6.4525/6.4730.
