- USD/CNY is currently trading around 6.7344 marks.
- It made intraday high at 6.7397 and low at 6.7271 levels.
- Intraday bias remains slightly bullish till the time pair holds key support at 6.7210 mark.
- A sustained close above 6.7210 marks will test key resistances at 6.7422, 6.7510, 6.7778 and 6.8072 marks respectively.
- Alternatively, a daily close below 6.7260 will drag the parity down towards key supports at 6.7150, 6.70, 6.6853, 6.6650, 6.6540 and 6.6234 marks respectively.
- 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.
- PBOC sets yuan mid-point at 6.7263 / dlr vs last close 6.7265.
- U.S. hopes to narrow differences with China during talks in Beijing and Washington - Trump administration official.
- China has made proposals on trade, including on technology transfers, that are more specific and with wider scope than ever before - Administration official.
- Whether to lift or keep current U.S. tariffs on Chinese imports is a sticking point, will be worked out as part of a deal - Trump administration official.
We prefer to take long position on USD/CNY around 6.7250, stop loss at 6.7000 and target of 6.7422/6.7510.
