FxWirePro: USD/CNY hits fresh 2 – month low at 7.0420 mark, China’s manufacturing PMI data misses expectations

• USD/CNY is currently trading around 7.0468 marks.
   
• It made intraday high at 7.0552 and low at 7.0420 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 7.0920 mark.
   
• A sustained close above 7.0920 marks will test key resistances at 7.1152, 7.1476, 7.1548, 7.1877, 7.2095, 7.3645 and 7.58 marks respectively.
   
• Alternatively, a daily close below 7.0540 will drag the parity down towards key supports at 7.0474, 7.0108, 6.97, 6.9297 and 6.88 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.
   
• China’s manufacturing PMI stands at 49.3 vs 49.8 previous release (expected 49.9).
   
• China’s non - manufacturing PMI stands at 52.8 vs 53.7 previous release (expected 53.7).

We prefer to take short position on USD/CNY around 7.0550, stop loss at 7.07 and target of 7.0108/6.97.