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FxWirePro: Chinese yuan strengthens after industrial production, retail sales data

USD/CNY is currently trading around 6.6101 marks. It made intraday high at 6.6194 and low at 6.6036 levels. Intraday bias remains bearish till the time pair holds key resistance at 6.6210 mark. A sustained close above 6.…

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FxWirePro: Chinese yuan strengthens after industrial production, retail sales data
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  • USD/CNY is currently trading around 6.6101 marks.
     
  • It made intraday high at 6.6194 and low at 6.6036 levels.
     
  • Intraday bias remains bearish till the time pair holds key resistance at 6.6210 mark.
     
  • A sustained close above 6.6210 marks will test key resistances at 6.6326, 6.6405, 6.6464, 6.6510, 6.6615, 6.6673, 6.6735 and 6.6964 marks respectively.
     
  • Alternatively, a daily close below 6.6127 will drag the parity down towards key supports at 6.6055, 6.5839, 6.5710, 6.5635, 6.5456 and 6.5371 marks respectively.
     
  • PBOC sets yuan mid-point at 6.6033/ dlr vs last close 6.6195.
     
  • Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
     
  • China Nov 2017 industrial output y/y decrease to 6.1 % (forecast 6 %) vs previous 6.2 %.
     
  • China Nov 2017 retail sales y/y increase to 10.2 % (forecast 10.2 %) vs previous 10 %.
     
  • China Nov 2017 urban investment (ytd)y/y decrease to 7.2 % (forecast 7.2 %) vs previous 7.3 %.
     
  • China Nov 2017 FDI (ytd) increase to 9.8 % vs previous 1.9 %.

We prefer to take short position on USD/CNY around 6.6130, stop loss 6.6210 and target of 6.5914/6.5839.

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