FxWirePro: Chinese yuan trades marginally higher despite lower than expected trade balance data

• USD/CNY is currently trading around 6.7722 marks.
   
• It made intraday high at 6.7754 and low at 6.7654 levels.
   
• Intraday bias remains slightly bearish for the moment.
   
• A sustained close above 6.7754 marks will test key resistances at 6.8072, 6.8224, 6.8530 and 6.87 marks respectively.
   
• Alternatively, a daily close below 6.7754 will drag the parity down towards key supports at 6.7422, 6.7594, 6.7345, 6.7210, 6.7000 and 6.6853 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 6.7596/ dlr vs last close 6.7780.
   
• China April 2019 yuan-denominated trade balance decrease to 93.57 cny vs previous 221.23 cny.
   
• China April 2019 trade balance usd decrease to 13.84 usd (forecast 35 usd) vs previous 32.67 usd (revised from 32.65 usd).

We prefer to take long position on USD/CNY only above 6.7754, stop loss at 6.7590 and target of 6.8072.