FxWirePro: Chinese yuan trades marginally higher on robust CPI data

• USD/CNY is currently trading around 6.8170 marks.
   
• It made intraday high at 6.8369 and low at 6.8161 levels.
   
• Intraday bias remains slightly bearish for the moment.
   
• A sustained close above 6.8343 marks will test key resistances at 6.8510, 6.8620, 6.8747, 6.8934, 6.9088, 6.9245 and 6.9414 marks respectively.
   
• Alternatively, a daily close below 6.8343 will drag the parity down towards key supports at 6.8054, 6.7864, 6.7658 and 6.7373 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
   
• PBOC sets yuan mid-point at 6.8317 / dlr vs last close 6.8318.
   
• China July 2018 CPI yy increase to 2.1 % (forecast 1.9 %) vs previous 1.9 %.
   
• China July 2018 CPI mm increase to 0.3 % (forecast 0.2 %) vs previous -0.1 %.
   
• China July 2018 PPI yy decrease to 4.6 % (forecast 4.4 %) vs previous 4.7 %.

We prefer to take short position on USD/CNY around 6.8150, stop loss 6.8370 and target of 6.7864.