FxWirePro: Chinese yuan trades marginally lower after CPI data

• USD/CNY is currently trading around 6.5852 marks.
   
• It made intraday high at 6.5879 and low at 6.5784 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.5784 mark.
   
• A sustained close above 6.5784 marks will test key resistances at 6.5872, 6.5984, 6.6211, 6.6550, 6.6673, 6.6735 and 6.6964 marks respectively.
   
• Alternatively, a daily close below 6.5784 will drag the parity down towards key supports at 6.5710, 6.5635, 6.5456 and 6.5371 marks respectively.
   
• PBOC sets yuan mid-point at 6.5839/ dlr vs last close 6.5805.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.
   
• China Sep CPI y/y decrease to 1.6 % (forecast 1.6 %) vs previous 1.8 %.
   
• China Sep PPI y/y increase to 6.9 % (forecast 6.3 %) vs previous 6.3 %.
   
• China Sep CPI m/m increase to 0.5 % (forecast 0.4 %) vs previous 0.4 %.

We prefer to take short position in USD/CNY only below 6.5784, stop loss at 6.5984 and target of 6.5635.

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