FxWirePro: Chinese yuan appreciates after Premier Li’s comments

• USD/CNY is currently trading around 6.3316 marks.
   
• It made intraday high at 6.3453 and low at 6.3285 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.3600 mark.
   
• A sustained close above 6.3427 marks will test key resistances at 6.3625, 6.3855 and 6.4017 marks respectively.
   
• Alternatively, a daily close below 6.3427 will drag the parity down towards key supports at 6.3286, 6.3168, 6.2942, 6.2827, 6.2584, 6.2322, 6.2196 and 6.1907 marks respectively.
   
• PBOC sets yuan mid-point at 6.3431 / dlr.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• China Feb Caixin services PMI decrease to 54.2 vs previous 54.7.
   
• China Caixin Feb composite PMI (services and manufacturing) falls to 53.3 vs Jan 53.7.

We prefer to take short position on USD/CNY around 6.3370, stop loss at 6.3600 and target of 6.2942/6.2584.

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