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FxWirePro: USD/CNY stabilizes above 7.05 mark, further sideways movement likely

  • USD/CNY is currently trading around 7.0571 marks.
     
  • It made intraday high at 7.0733 and low at 7.0569 levels.
     
  • Intraday bias remains neutral till the time pair holds key support at 7.0619 mark.
     
  • A sustained close above 7.0619 marks will test key resistances at 7.0750, 7.0822, 7.0905, 7.1022, 7.1142, 7.1267, 7.1303, 7.1428 and 7.1515 marks respectively.
     
  • Alternatively, a daily close below 7.0619 will drag the parity down towards key supports at 7.0427, 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 7.06, stop loss at 7.0750 and target of 7.0427/7.0285/7.01.

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