FxWirePro: Chinese yuan falls sharply against U.S. dollar as trade balance data misses expectations

• USD/CNY is currently trading around 6.4070 marks.
   
• It made intraday high at 6.4078 and low at 6.3889 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.3849 marks.
   
• A sustained close above 6.3896 marks will test key resistances at 6.4175, 6.4278, 6.4329, 6.4525 and 6.4730 marks respectively.
   
• Alternatively, a daily close below 6.3896 will drag the parity down towards key supports at 6.3849, 6.3750, 6.3654, 6.3510, 6.3313 and 6.3210 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 6.4003 / dlr vs last close 6.3931.
   
• China May yuan-denominated trade balance decrease to 156.51 bln cn vs previous 180.3 bln cn.
   
• China May trade balance usd decrease to 24.92 bln us (forecast 31.9 bln us) vs previous 28.38 bln us (revised from 28.78 bln us).

We prefer to take long position on USD/CNY around 6.4000, stop loss 6.3849 and target of 6.4329.

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