- USD/CNY is currently trading around 6.72 marks.
- It made intraday high at 6.7243 and low at 6.7183 levels.
- Intraday bias remains neutral for the moment
. - A sustained close above 6.7200 marks will test key resistances at 6.73, 6.7422, 6.7510, 6.7778 and 6.8072 marks respectively.
- Alternatively, a daily close below 6.7200 will drag the parity down towards key supports at 6.7141, 6.6963, 6.6849, 6.6650, 6.6540 and 6.62 marks respectively.
- 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.
- PBOC sets yuan mid-point at 6.7202 / dlr vs last close 6.7200.
We prefer to take long position on USD/CNY only above 6.7250, stop loss at 6.7128 and target of 6.7422.
