- USD/CNY is currently trading around 6.9684 marks.
- It made intraday high at 6.9919 and low at 6.9625 levels.
- Intraday bias remains bearish till the time pair holds key resistance at 7.00 mark.
- A sustained close above 6.9905 marks will test key resistances at 7.0120, 7.0388, 7.0552, 7.07 and 7.0920 marks respectively.
- Alternatively, a daily close below 6.9905 will drag the parity down towards key supports at 6.9550, 6.9210, 6.90, 6.8658, 6.84 and 6.8222 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’s Caixin manufacturing PMI stands at 40.3 vs 51.1 previous release (expected 46.1).
We prefer to take short position on USD/CNY only below 6.96, stop loss at 6.9920 and target of 6.9210.
