- USD/CNY is currently trading around 7.0690 marks.
- It made intraday high at 7.0710 and low at 7.0583 levels.
- Intraday bias remains bullish till the time pair holds key support at 7.0368 mark.
- A sustained close above 7.0608 marks will test key resistances at 7.07, 7.0920, 7.1030 and 7.1477 marks respectively.
- Alternatively, a daily close below 7.0368 will drag the parity down towards key supports at 7.0180, 7.0074, 6.9765, 6.9525, 6.9297 and 6.88 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
- China’s Caixin services PMI data stands at 53.5 vs 51.1 previous release (expected 51.2).
We prefer to take long position on USD/CNY around 7.05, stop loss at 7.0368 and target of 7.0920/7.1030.
