- USD/CNY is currently trading around 7.0754 marks.
- It made intraday high at 7.0793 and low at 7.0661 levels.
- Intraday bias remains neutral for the moment.
- A sustained close above 7.0753 marks will test key resistances at 7.0960, 7.1152, 7.1548, 7.1877, 7.2095, 7.3645 and 7.58 marks respectively.
- Alternatively, a daily close below 7.0753 will drag the parity down towards key supports at 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.
- China industrial production y/y 4.4 pct vs 4.8 pct previous release (expected 5.2 pct).
- China retail sales y/y 7.5 pct vs 7.6 pct previous release (expected 7.9 pct).
We prefer to take long position on USD/CNY only above 7.0850, stop loss at 7.0497 and target 7.0960/7.1152.