Chinese yuan strengthens on robust trade balance data, hits highest level since July 2019

• USD/CNY is currently trading around 6.8729 marks.
  
• It made intraday high at 6.8937 and low at 6.8658 levels.
  
• Intraday bias remains bearish for the moment.
  
• A sustained close above 6.8923 marks will test key resistances at 6.9268, 6.9540, 6.97, 6.9867, 6.9957, 7.0168, 7.0388, 7.07 and 7.0920 marks respectively.
  
• Alternatively, a daily close below 6.8923 will drag the parity down towards key supports at 6.8662, 6.84 and 6.8222 marks respectively.
  
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
  
• China’s trade balance stands at 329B vs 274B previous release (expected 315B).

We prefer to take short position on USD/CNY around 6.88, stop loss at 6.9050 and target of 6.84.