FxWirePro: Chinese yuan strengthens noticeably against U.S. dollar, stay bearish
USD/CNY is currently trading around 6.8032 marks. It made intraday high at 6.8079 and low at 6.7768 levels. Intraday bias remains bearish till the time pair holds key resistance at 6.8103 marks. A sustained close above 6…
It made intraday high at 6.8079 and low at 6.7768 levels.
Intraday bias remains bearish till the time pair holds key resistance at 6.8103 marks.
A sustained close above 6.8072 marks will test key resistances at 6.8210, 6.8525 and 6.8886 marks respectively.
Alternatively, a daily close below 6.8072 will drag the parity down towards key supports at 6.7764, 6.7590, 6.7346, 6.7250, 6.7050 and 6.6722 marks respectively.
Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
PBOC sets yuan mid-point at 6.7969 / dlr vs last close 6.8076.
We prefer to take short position on USD/CNY around 6.7950, stop loss at 6.8250 and target of 6.7764/6.7590.
