FxWirePro: Chinese yuan trades almost flat despite robust trade balance data

• USD/CNY is currently trading around 6.9772 marks.
   
• It made intraday high at 6.9839 and low at 6.9679 levels.
   
• Intraday bias remains slightly bearish till the time pair holds key resistance at 6.9967 mark.
   
• A sustained close above 6.9765 marks will test key resistances at 6.9967, 7.0303, 7.0540 and 7.0920 marks respectively.
   
• Alternatively, a daily close below 6.9765 will drag the parity down towards key supports at 6.9525, 6.9297 and 6.88 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 301B vs 275B previous release (expected 287B).
   
• China’s trade balance USD stands at 42.8B vs 39.7B previous release (expected 40.6B).

We prefer to take short position on USD/CNY around 6.98, stop loss at 6.9950 and target of 6.9525/6.9297.