- USD/CNY is currently trading around 6.8858 marks.
- It made intraday high at 6.9035 and low at 6.8822 levels.
- Intraday bias remains slightly bearish till the time pair holds key resistance at 6.9128 marks.
- On the top side, a sustained close above 6.8933 marks will test key resistances at 6.9052, 6.9128, 6.9237, 6.9330, 6.9435, 6.9637 and 6.9883 marks respectively.
- Alternatively, a daily close below 6.8933 will drag the parity down towards key supports at 6.87, 6.8550, 6.8449, 6.8090, 6.7969, 6.7769, 6.7540, 6.7439, 6.7370, 6.7288, 6.7180 and 6.7055.
- 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 6.8865/ dollar vs last close 6.8980.
We prefer to take short position in USD/CNY only below 6.8785, stop loss at 6.9035 and target of 6.8550/6.8510/6.8449.
