- USD/CNY is currently trading around 6.8179 marks.
- It made intraday high at 6.8189 and low at 6.8054 levels.
- Intraday bias remains bullish for the moment.
- A sustained close above 6.8205 marks will test key resistances at 6.8388, 6.8548 and 6.8705 marks respectively.
- Alternatively, a daily close below 6.8205 will drag the parity down towards key supports at 6.7864, 6.7658, 6.7373, 6.7160, 6.7005, 6.6715, 6.6518 and 6.6340 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
- PBOC sets yuan mid-point at 6.7942 / dlr vs last close 6.8150.
- Shanghai composite index down over 2 pct and China's CSI300 index down over 2 pct.
We prefer to take long position on USD/CNY around 6.8100, stop loss 6.7864 and target of 6.8548.