FxWirePro: China’s yuan marginally lower despite higher than expected Caixin services PMI data

• USD/CNY is currently trading around 6.8881 marks.
   
• It made intraday high at 6.8898 and low at 6.8781 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.88 mark.   
   
• A daily close below 6.8801 will drag the parity down towards key supports at 6.87, 6.8550, 6.8449, 6.8090, 6.7969, 6.7769, 6.7540, 6.7439, 6.7370, 6.7288, 6.7180 and 6.7055.
   
• On the top side, a sustained close above 6.8850 marks will test key resistances at 6.8960, 6.9052, 6.9128, 6.9237, 6.9330, 6.9435, 6.9637 and 6.9883 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 6.8870/ dollar vs last close 6.89.
   
• China’s November Caixin services PMI increases to 53.1 vs previous 52.4.

We prefer to take long position in USD/CNY around 6.8850, stop loss at 6.8750 and target of 6.9035/6.9197.