FxWirePro: USD/CNY stabilizes below 6.67 mark, PBOC sets the yuan mid-point at the strongest level since Sept 22, 2016

• USD/CNY is currently trading around 6.6623 marks.
   
• It made intraday high at 6.6655 and low at 6.6552 levels.
   
• Intraday bias remains slightly bullish till the time pair holds key support at 6.6449 mark.
   
• A sustained close above 6.6611 marks will test key resistances at 6.6720, 6.6826, 6.7055, 6.7206, 6.7289, 6.7373, 6.7486, 6.7529, 6.7668 and 6.7776 marks respectively.
   
• Alternatively, a daily close below 6.6611 will drag the parity down towards key supports at 6.6449, 6.6378 and 6.6220 marks respectively.
   
• PBOC sets yuan mid-point at 6.6601/ dlr vs last close 6.6666.
   
• China sets the yuan mid-point at the strongest level since September 22, 2016.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.
   
• China July Urban investment (ytd)y/y decrease to 8.3 % (forecast 8.6 %) vs previous 8.6 %.
   
• China July industrial output y/y decrease to 6.4 % (forecast 7.2 %) vs previous 7.6 %.
   
• China July retail sales y/y decrease to 10.4 % (forecast 10.8 %) vs previous 11.0 %.

We prefer to take long position in USD/CNY around 6.6600, stop loss at 6.6449 and target of 6.6720/6.6826.

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