- USD/CNY is currently trading around 7.0655 marks.
- It made intraday high at 7.0722 and low at 7.0562 levels.
- Intraday bias remains slightly bullish till the time pair holds key support at 7.0427 mark.
- A sustained close above 7.0711 marks will test key resistances at 7.0822, 7.0905, 7.1022, 7.1142, 7.1267, 7.1303, 7.1428 and 7.1515 marks respectively.
- Alternatively, a daily close below 7.0427 will drag the parity down towards key supports at 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.
We prefer to take short position in USD/CNY around 7.07, stop loss at 7.0910 and target of 7.0285/7.01.