- USD/CNY is currently trading around 7.0498 marks.
- It made intraday high at 7.0520 and low at 7.0436 levels.
- Intraday bias remains slightly bullish for the moment.
- A sustained close above 7.0457 marks will test key resistances at 7.0694, 7.12, 7.3645 and 7.58 marks respectively.
- Alternatively, a daily close below 7.0240 will drag the parity down towards key supports at 6.9861, 6.9525, 6.9362, 6.8649 and 6.8492 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
- China CPI at 2.8 pct vs 2.7 pct previous release.
- China PPI at -0.3 pct vs 0.0 pct previous release.
We prefer to take long position on USD/CNY around 7.0400, stop loss at 6.9861 and target of 7.12.
