- USD/CNY is currently trading around 6.5965 marks.
- It made intraday high at 6.6008 and low at 6.5915 levels.
- Intraday bias remains bullish till the time pair holds key support at 6.5919 mark.
- A sustained close above 6.5919 marks will test key resistances at 6.6227, 6.6673, 6.6735, 6.6814, 6.7055, 6.7206, 6.7289, 6.7373, 6.7486, 6.7529, 6.7668 and 6.7776 marks respectively.
- Alternatively, a daily close below 6.5919 will drag the parity down towards key supports at 6.5806, 6.5505, 6.5357, 6.4910 and 6.4538 marks respectively.
- PBOC sets yuan mid-point at 6.6010/ dlr vs last close 6.5966.
- China sets the yuan mid-point at the strongest level since June 24, 2016.
- Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.
- China’s August NBS non-manufacturing PMI decreases to 53.4 vs previous 54.50.
- China’s August NBS manufacturing PMI increases to 51.7 (forecast 51.3) vs previous 51.4.
We prefer to take short position in USD/CNY only below 6.5919, stop loss at 6.6227 and target of 6.5505.
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