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

• USD/CNY is currently trading around 6.5887 marks.
   
• It made intraday high at 6.5971 and low at 6.5796 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.6227 mark.
   
• A sustained close above 6.5940 marks will test key resistances at 6.6227, 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 6.5940 will drag the parity down towards key supports at 6.5505, 6.5357, 6.4910 and 6.4538 marks respectively.
   
• PBOC sets yuan mid-point at 6.6102/ dlr vs last close 6.5956.
   
• China sets the yuan mid-point at the strongest level since August 17, 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 6.5932, stop loss at 6.6227 and target of 6.5505.

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