FxWirePro: USD/CNY erases previous gain against U.S. dollar, short term trend reversal likely

• USD/CNY is currently trading around 6.6680 marks.
   
• It made intraday high at 6.6765 and low at 6.6449 levels.
   
• Intraday bias remains slightly bullish till the time pair holds key support at 6.6449 mark.
   
• A sustained close above 6.6460 marks will test key resistances at 6.6826, 6.7055, 6.7206, 6.7289, 6.7373, 6.7486, 6.7529, 6.7668 and 6.7776 marks respectively.
   
• Alternatively, a daily close below 6.6460 will drag the parity down towards key supports at 6.6442, 6.6378 and 6.6220 marks respectively.
   
• PBOC sets yuan mid-point at 6.6642/ dlr vs last close 6.6485.
   
• China sets the yuan mid-point at the strongest level since September 22, 2016.
   
• 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.

We prefer to take long position in USD/CNY around 6.6630, stop loss at 6.6449 and target of 6.6826/6.7206.

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