- USD/CNY is currently trading around 6.8628 marks.
- It made intraday high at 6.8629 and low at 6.8348 levels.
- Intraday bias remains bullish till the time pair holds key support at 6.8342 mark.
- A sustained close above 6.8342 marks will test key resistances at 6.8525, 6.8640, 6.8886, 6.9120, 6.9210, 6.9396, 6.9525 and 6.9620 marks respectively.
- Alternatively, a daily close below 6.8342 will drag the parity down towards key supports at 6.8210, 6.8095, 6.8020 and 6.7864 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 6.8476 / dlr vs last close 6.8375.
- Trump - We are either going to have a real deal with China or no deal at all.
- Trump - If U.S. does not strike deal with China, U.S. will levy major tariffs against Chinese products shipped into U.S..
We prefer to take long position on USD/CNY only above 6.8886, stop loss at 8.8348 and target of 6.96.
