- USD/CNY is currently trading around 7.0777 marks.
- It made intraday high at 7.0781 and low at 7.0665 levels.
- Intraday bias remains neutral for the moment.
- A sustained close above 7.0920 marks will test key resistances at 7.1152, 7.1476, 7.1548, 7.1877, 7.2095, 7.3645 and 7.58 marks respectively.
- Alternatively, a daily close below 7.0765 will drag the parity down towards key supports at 7.0632, 7.0474, 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 GDP q/y stands at 6.0 pct vs 6.2 pct previous release (expected 6.1).
- China industrial production y/y stands at 5.8 pct vs 4.4 pct previous release (expected 5.0).
- China retail sales y/y stands at 7.8 pct vs 7.5 pct previous release (expected 7.8).
We prefer to take short position on USD/CNY only below 7.0644, stop loss at 7.09 and target 7.0474/7.0108.
By Aarti Panchal