- USD/CNY is currently trading around 7.0734 marks.
- It made intraday high at 7.0910 and low at 7.0659 levels.
- Intraday bias remains bearish till the time pair holds key resistance at 7.1057 mark.
- A sustained close above 7.1057 marks will test key resistances at 7.0920, 7.1142, 7.1303 and 7.1515 marks respectively.
- Alternatively, a daily close below 7.0900 will drag the parity down towards key supports at 7.0622, 7.0450, 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. Current downside movement is short term trend correction only.
We prefer to take short position in USD/CNY around 7.0750, stop loss at 7.0911 and target of 7.0622/7.0450.
