FxWirePro: Chinese yuan gains on robust trade balance data

• USD/CNY is currently trading around 6.7780 marks.
   
• It made intraday high at 6.7864 and low at 6.7776 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.8009 mark.
   
• A sustained close above 6.7864 marks will test key resistances at 6.8009, 6.8070, 6.8250, 6.8440, 6.8526, 6.8671, 6.8882, 6.8942, 6.9010 marks 6.9080 marks respectively.
   
• Alternatively, a daily close below 6.7864 will drag the parity down towards key supports at 6.7757, 6.7607, 6.7520, 6.7436 and 6.7222 marks respectively.
   
• PBOC sets yuan mid-point at 6.7802/ dlr vs last close 6.7888.
   
• China June exports y/y increase to 11.3 % (forecast 8.7 %) vs previous 8.7 %.
   
• China June trade balance USD increase to 42.77 bln $ (forecast 42.44 bln $) vs previous 40.81 bln $.
   
• China June imports y/y increase to 17.2 % (forecast 13.1 %) vs previous 14.8 %.

We prefer to take short position in USD/CNY around 6.7820, stop loss at 6.8000 and target of 6.7600.

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