FxWirePro: Chinese yuan trades marginally higher despite lower than expected Caixin services PMI data

• USD/CNY is currently trading around 6.6971 marks.
   
• It made intraday high at 6.7068 and low at 6.6963 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.7100 marks.
   
• A sustained close above 6.7050 marks will test key resistances at 6.7150, 6.73, 6.7422, 6.7510, 6.7778 and 6.8072 marks respectively.
   
• Alternatively, a daily close below 6.6770 will drag the parity down towards key supports at 6.6650, 6.6540 and 6.62 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 6.6998 / dlr vs last close 6.7101.
   
• China Feb 2019 Caixin Services PMI decrease to 51.1 vs previous 53.6.

We prefer to take short position on USD/CNY around 6.70, stop loss at 6.71 and target of 6.6750.