- USD/CNY is currently trading around 6.8702 marks.
- It made intraday high at 6.8788 and low at 6.8669 levels.
- Intraday bias remains bearish till the time pair holds key resistance at 6.8835 mark.
- A sustained close above 6.8923 marks will test key resistances at 6.9050, 6.9268, 6.9540, 6.97, 6.9867, 6.9957, 7.0168, 7.0388, 7.07 and 7.0920 marks respectively.
- Alternatively, a daily close below 6.8768 will drag the parity down towards key supports at 6.8658, 6.84 and 6.8222 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
- China’s GDP remains unchanged at 6.0 pct.
- China’s retail sales data remains unchanged at 8.0 pct.
- China’s unemployment rate stands at 5.2 pct vs 5.1 pct previous release.
- China’s industrial production stands at 6.9 pct vs 6.2 pct previous release (expected 5.9).
We prefer to take short position on USD/CNY around 6.8730, stop loss at 6.8920 and target of 6.84.