- USD/CNY is currently trading around 7.0842 marks.
- It made intraday high at 7.0970 and low at 7.0842 levels.
- Intraday bias remains slightly bearish till the time pair holds key resistance at 7.1022 mark.
- A sustained close above 7.0913 marks will test key resistances at 7.0982, 7.1022, 7.1095 and 7.1266 marks respectively.
- Alternatively, a daily close below 7.0913 will drag the parity down towards key supports at 7.0820, 7.07, 7.0650, 7.0525, 7.0449, 7.0319, 7.0285, 7.01, 7.0076, 6.9857 and 6.9510 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 7.0903 vs last close 7.0925 mark.
We prefer to take long position in USD/CNY only above 7.0982, stop loss at 7.0820 and target of 7.1095.
