- USD/CNY is currently trading around 6.8674 marks.
- It made intraday high at 6.8720 and low at 6.8627 levels.
- Intraday bias remains bearish for the moment.
- A sustained close above 6.8707 marks will test key resistances at 6.8886, 6.9075, 6.9210, 6.9396, 6.9525 and 6.9620 marks respectively.
- Alternatively, a daily close below 6.8707 will drag the parity down towards key supports at 6.8525, 6.8348, 6.8210, 6.8095, 6.8020 and 6.7864 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
- China Dec 2018 Caixin services PMI increase to 53.9 vs previous 53.8.
- China Caixin/markit Dec composite PMI (services and manufacturing) rises to 52.2 vs Nov 51.9.
- PBOC sets yuan mid-point at 6.8586 / dlr vs last close 6.8730.
We prefer to take short position on USD/CNY around 6.87, stop loss at 6.8886 and target of 6.8525.
