- USD/CNY is currently trading around 7.0390 marks.
- It made intraday high at 7.0411 and low at 7.0366 levels.
- Intraday bias remains neutral for the moment.
- A sustained close above 7.0388 marks will test key resistances at 7.0608, 7.07, 7.0920, 7.1030 and 7.1477 marks respectively.
- Alternatively, a daily close below 7.0280 will drag the parity down towards key supports at 7.0168, 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 CPI y/y stands at 4.5 pct vs 3.8 pct previous release (expected 4.5).
- China’s PPI stands at -1.4 pct vs -1.6 pct previous release (expected -1.5).
We prefer to take short position on USD/CNY only below 7.03, stop loss at 7.0440 and target of 7.0168/7.0074.