FxWirePro: USD/CNY resumes trading after 7 – day holidays, Chinese yuan strengthen despite lower than expected Caixin services PMI data

• USD/CNY is currently trading around 7.1267 marks.
   
• It made intraday high at 7.1476 and low at 7.1236 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 7.15 mark.
   
• A sustained close above 7.1476 marks will test key resistances at 7.1548, 7.1877, 7.2095, 7.3645 and 7.58 marks respectively.
   
• Alternatively, a daily close below 7.1476 will drag the parity down towards key supports at 7.1177, 7.1080, 7.0621, 7.0497, 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 Caixin services PMI stands at 51.3 pct vs 52.1 pct previous release (expected 52.1).

We prefer to take short position on USD/CNY around 7.1320, stop loss at 7.15 and target 7.1080/7.0621.