FxWirePro: Chinese yuan trades almost flat as S&P lowers sovereign credit rating
USD/CNY is currently trading around 6.5887 marks. It made intraday high at 6.5905 and low at 6.5719 levels. Intraday bias remains neutral till the time pair holds key support at 6.5700 mark. A sustained close above 6.586…
It made intraday high at 6.5905 and low at 6.5719 levels.
Intraday bias remains neutral till the time pair holds key support at 6.5700 mark.
A sustained close above 6.5860 marks will test key resistances at 6.5971, 6.6013, 6.6227, 6.6673 and 6.6735 marks respectively.
Alternatively, a daily close below 6.5860 will drag the parity down towards key supports at 6.5700, 6.5635, 6.5456, 6.5371, 6.5205, 6.4829, 6.4772, 6.4510, 6.4429, 6.4345, 6.4119 and 6.4060 marks respectively.
PBOC sets yuan mid-point at 6.5861/ dlr vs last close 6.5922.
Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.
S&P lowered the long-term sovereign credit ratings on China to 'A+' from 'AA-' and the short-term rating to 'A-1' from 'A-1+'.
We prefer to take long position in USD/CNY around 6.5840, stop loss at 6.5690 and target of 6.6227.
