- USD/CNY is currently trading around 6.9161 marks.
- It made intraday high at 6.9297 and low at 6.9135 levels.
- Intraday bias remains bearish till the time pair holds key resistance at 6.9297 mark.
- A sustained close above 6.9297 marks will test key resistances at 6.94, 6.9525 and 6.9648 marks respectively.
- Alternatively, a daily close below 6.9297 will drag the parity down towards key supports at 6.9056, 6.8979, 6.8628, 6.8525, 6.8210, 6.80 and 6.7813 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart. Current downside movement is short term trend correction only.
- PBOC sets yuan mid-point at 6.8930/ dlr vs last close 6.9305.
We prefer to take long position on USD/CNY around 6.91, stop loss 6.8979 and target of 6.9525/6.97.
