- USD/CNY is currently trading around 6.9339 marks.
- It made intraday high at 6.9549 and low at 6.9238 levels.
- Intraday bias remains bearish till the time pair holds key resistance at 6.9552 mark.
- A sustained close above 6.9430 marks will test key resistances at 6.9552, 6.9633, 6.9778 and 6.9883 marks respectively.
- On the other side, a daily close below 6.9429 will drag the parity down towards key supports at 6.9343, 6.9204, 6.9127, 6.9026, 6.9189, 6.8983, 6.8770, 6.8510 and 6.8449 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart. Current downside movement is short term trend correction only.
- PBOC sets Yuan mid-point at 6.9498/ dollar vs last close 6.9467.
- China December Caixin manufacturing PMI final increases to 51.9 (forecast 50.7) vs previous 50.9.
We prefer to go short on USD/CNY around 6.9370, stop loss at 6.9552 and target of 6.9026.
