- USD/CNY is currently trading around 7.0851 marks.
- It made intraday high at 7.0989 and low at 7.0850 levels.
- Intraday bias remains slightly bearish till the time pair holds key resistance at 7.1095 mark.
- A sustained close above 7.1095 marks will test key resistances at 7.1142, 7.1303 and 7.1515 marks respectively.
- Alternatively, a daily close below 7.0611 will drag the parity down towards key supports at 7.0459, 7.0285, 7.01, 7.0076, 6.9857 and 6.9510 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
- China’s manufacturing PMI stands at 52.0 vs 35.7 previous release (expected 44.9).
- China’s non – manufacturing PMI stands at 52.3 vs 29.6 previous release (expected 42.1).
We prefer to take long position in USD/CNY only above 7.1022, stop loss at 7.08 and target of 7.1303/7.1515.