FxWirePro: Chinese yuan trades marginally lower despite robust Caixin services PMI data

• USD/CNY is currently trading around 7.0838 marks.
   
• It made intraday high at 7.0935 and low at 7.0819 levels.
   
• Intraday bias remains neutral till the time pair holds key support at 7.0819 mark.
   
• A sustained close above 7.0819 marks will test key resistances at 7.1022, 7.1142, 7.1267, 7.1303, 7.1428 and 7.1515 marks respectively.
   
• Alternatively, a daily close below 7.0819 will drag the parity down towards key supports at 7.07, 7.0525, 7.0459, 7.0285, 7.01, 7.0076, 6.9857 and 6.9510 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
   
• China’s Caixin services PMI stands at 43.0 vs 26.5 previous release (expected 39.6).

We prefer to take short position in USD/CNY only below 7.0819, stop loss at 7.1022 and target of 7.07/7.0525.