FxWirePro: USD/CNY hits fresh 4-week low at 6.8874, PBOC sets yuan mid-point at 6.9307

• USD/CNY is currently trading around 6.9075 marks.
   
• It made intraday high at 6.9321 and low at 6.8874 levels.
   
• Intraday bias remains bearish for the moment. .
   
• A daily close below 6.8983 will drag the parity down towards key supports at 6.8770, 6.8510 and 6.8449 marks respectively.
   
• On the other side, a sustained close above 6.90 marks will test key resistances at 6.9201, 6.9321, 6.9496, 6.9615, 6.9778 and 6.9883 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 6.9307/ dollar vs last close 6.9306.
   
• China December Caixin services PMI increases to 53.4 vs prev 53.1.
   
• China Caixin December composite index (manufacturing and services) rises to 53.5, near four-year high.                        

We prefer to take short position in USD/CNY around 6.9050, stop loss 6.9321 and target of 6.9615.