FxWirePro: Chinese yuan falls drastically in early Asia after PBoC’s loan prime rate decision; hits lowest level since Dec 12, 2019

• USD/CNY is currently trading around 7.0235 marks.
   
• It made intraday high at 7.0256 and low at 6.9975 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.9975 mark.
   
• A sustained close above 7.0207 marks will test key resistances at 7.0388, 7.0552, 7.07 and 7.0920 marks respectively.
   
• Alternatively, a daily close below 6.9975 will drag the parity down towards key supports at 6.98, 6.9649, 6.9550, 6.9210, 6.90, 6.8658, 6.84 and 6.8222 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
   
• PBoC’s loan prime rate stands at 4.05 pct vs 4.15 pct previous release.

We prefer to take long position on USD/CNY around 7.0150, stop loss at 6.99 and target of 7.0388/7.0552.