- USD/CNY is currently trading around 6.6878 marks.
- It made intraday high at 6.7141 and low at 6.6727 levels.
- Intraday bias remains bearish till the time pair holds key resistance at 6.7300 marks.
- A sustained close above 6.7111 marks will test key resistances at 6.73, 6.7422, 6.7510, 6.7778 and 6.8072 marks respectively.
- Alternatively, a daily close below 6.7111 will drag the parity down towards key supports at 6.6722, 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.
- PBOC sets yuan mid-point at 6.7131 / dlr vs last close 6.7153.
We prefer to take short position on USD/CNY around 6.70, stop loss at 6.7210 and target of 6.6722/6.6650.
