FxWirePro: Chinese yuan strengthens on robust Caixin manufacturing PMI data
USD/CNY is currently trading around 6.5840 marks. It made intraday high at 6.5887 and low at 6.5820 levels. Intraday bias remains bearish till the time pair holds key resistance at 6.6227 mark. A sustained close above 6.…
It made intraday high at 6.5887 and low at 6.5820 levels.
Intraday bias remains bearish till the time pair holds key resistance at 6.6227 mark.
A sustained close above 6.5888 marks will test key resistances at 6.6013, 6.6227, 6.6673, 6.6735, 6.6814, 6.7055, 6.7206, 6.7289 and 6.7373 marks respectively.
Alternatively, a daily close below 6.5888 will drag the parity down towards key supports at 6.5806, 6.5505, 6.5357, 6.4910 and 6.4538 marks respectively.
PBOC sets yuan mid-point at 6.5909/ dlr vs last close 6.5889.
Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
China August Caixin manufacturing PMI final increase to 51.6 (forecast 50.9) vs previous 51.1.
We prefer to take short position in USD/CNY around 6.5865, stop loss at 6.6227 and target of 6.5505.
