- USD/CNY is currently trading around 7.0015 marks.
- It made intraday high at 7.0086 and low at 6.9904 levels.
- Intraday bias remains slightly bearish till the time pair holds key resistance at 7.0282 mark.
- A sustained close above 7.0282 marks will test key resistances at 7.0388, 7.0425, 7.05, 7.0670 and 7.1030 marks respectively.
- Alternatively, a daily close below 7.0035 will drag the parity down towards key supports at 6.9732, 6.9510, 9.94, 6.9240, 6.90 and 6.8788 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 industrial production stands at -13.5 pct vs 6.9 pct previous release (expected -3.0).
- China’s fixed asset investment stands at -24.5 pct vs 5.4 pct previous release (expected -2.0 pct).
- China’s retail sales stands at -20.5 pct vs 8.0 pct previous release (expected -4.0).
- China’s unemployment rate stands at 6.2 pct vs 5.2 pct previous release.
We prefer to take long position in USD/CNY only above 7.01, stop loss at 6.9732 and target of 7.0282/7.0388/7.05.
