- USD/CNY is currently trading around 6.6708 marks.
- It made intraday high at 6.6772 and low at 6.6610 levels.
- Intraday bias remains slightly bearish till the time pair holds key resistance at 6.6805 marks.
- On the top side, a sustained close above 6.6805 mark will test key resistances at 6.6873, 6.7017, 6.7583 and 6.8158 marks respectively.
- Alternatively, a daily close below 6.6610 will drag the parity down towards key supports at 6.6560, 6.6425, 6.6281, 6.6110, 6.6042, 6.5930, 6.5710, 6.5510 (20D EMA), 6.5369, 6.5758, 6.4910, 6.4721 and 6.4531 levels.
- PBOC sets Yuan mid-point at 6.6786/ dollar vs last close 6.6734.
- 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 August Beijing new home prices +23.5 pct y/y (July +20.7 pct).
- China August Shanghai new home prices +31.2 pct y/y (July +27.3 pct).
- China August Shenzhen new home prices +36.8 pct y/y (july +40.9 pct) - Stats bureau.
We prefer to take short position in USD/CNY around 6.6745, stop loss 6.6805 and target 6.6610/6.6560.
