FxWirePro: Chinese yuan rises despite lower than expected Caixin manufacturing PMI data

• USD/CNY is currently trading around 6.8377 marks.
   
• It made intraday high at 6.8667 and low at 6.8362 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.8783 mark.
   
• A sustained close above 6.8649 marks will test key resistances at 6.8783, 6.90, 6.9150, 6.9297, 6.94, 6.9548 and 6.9750 marks respectively.
   
• Alternatively, a daily close below 6.8520 will drag the parity down towards key supports at 6.8331, 6.8210, 6.80 and 6.7813 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 6.8716/ dlr vs last close 6.8650.
   
• China June 2019 composite PMI decrease to 53 vs previous 53.3.
   
• China June 2019 Caixin manufacturing PMI final decrease to 49.4 vs previous 50.2.

We prefer to take short position on USD/CNY around 6.84, stop loss at 6.8783 and target of 6.8210/6.80.