FxWirePro: Chinese yuan strengthens against U.S. dollar, hits strongest level since August 2016

• USD/CNY is currently trading around 6.6382 marks.
   
• It made intraday high at 6.6497 and low at 6.6336 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.6673 mark.
   
• A sustained close above 6.6464 marks will test key resistances at 6.6673, 6.6735, 6.6814, 6.7055, 6.7206, 6.7289, 6.7373, 6.7486, 6.7529, 6.7668 and 6.7776 marks respectively.
   
• Alternatively, a daily close below 6.6464 will drag the parity down towards key supports at 6.6220, 6.6159 and 6.6022 marks respectively.
   
• PBOC sets yuan mid-point at 6.6353/ dlr vs last close 6.6484.
   
• China sets the yuan mid-point at the strongest level since August 19, 2016.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.

We prefer to take short position in USD/CNY around 6.6420, stop loss at 6.6674 and target of 6.6022.

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