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FxWirePro: PBoC sets Yuan midpoint at lowest level against dollar since December 2010

  • USD/CNY is currently trading around 6.6383 marks.
     
  • It made intraday high at 6.6419 and low at 6.6110 levels.
     
  • Intraday bias remains bullish till the time pair holds key support at 6.6042 levels.
     
  • On the top side, a sustained close above 6.64 marks will test key resistance at 6.6784 and 6.6838 and 6.6963 marks respectively.
     
  • Alternatively, reversal from key resistance will drag the parity down towards key supports at 6.6042, 6.5930, 6.5710, 6.5510(20D EMA), 6.5369, 6.5758, 6.4910, 6.4721 and 6.4531 levels.
     
  • Important to note here that, 20D EMA, 30D and 55D EMA heads up, which confirms bullish trend.
     
  • PBOC sets Yuan mid-point at 6.6375/ dollar vs last close 6.6260.

Positioning is inconclusive at this point, with prices offering no clear cut signal to initiate a long or short trade. We will continue to remain on sidelines for the time being.

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