- USD/CNY is currently trading around 6.8839 marks.
- It made intraday high at 6.9032 and low at 6.8779 levels.
- Intraday bias remains bearish for the moment. .
- A sustained close above 6.8985 marks will test key resistances at 6.9080, 6.9162, 6.9336, 6.9496, 6.9615, 6.9778 and 6.9883 marks respectively.
- Alternatively, a daily close below 6.8985 will drag the parity down towards key supports at 6.8720, 6.8510 and 6.8449 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 6.8992/ dollar vs last close 6.9005.
We prefer to go short on USD/CNY around 6.8850, stop loss at 6.9080 and target of 6.8720/6.8510.
