- USD/CNY is currently trading around 6.7309 marks.
- It made intraday high at 6.7489 and low at 6.7232 levels.
- Intraday bias remains bearish till the time pair holds key resistance at 6.7700 marks.
- A sustained close above 6.7440 marks will test key resistances at 6.7490, 6.77, 6.7899, 6.8072, 6.8210, 6.8525 and 6.8886 marks respectively.
- Alternatively, a daily close below 6.7440 will drag the parity down towards key supports at 6.7250, 6.7050 and 6.6722 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
- PBOC sets yuan mid-point at 6.7472 / dlr vs last close 6.7485.
We prefer to take short position on USD/CNY around 6.74, stop loss at 6.7510 and target of 6.7050.
