- USD/CNY is currently trading around 7.0203 marks.
- It made intraday high at 7.0238 and low at 7.0184 levels.
- Intraday bias remains neutral till the time pair holds key resistance at 7.0222 mark.
- A sustained close above 7.0222 marks will test key resistances at 7.0303, 7.0540 and 7.0920 marks respectively.
- Alternatively, a daily close below 7.0222 will drag the parity down towards key supports at 7.0073, 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 retail sales stands at 7.2 pct vs 7.8 pct previous release (expected 7.8).
- China’s industrial production stands at 4.7 pct vs 5.8 pct previous release (expected 5.5).
- China’s unemployment rate stands at 5.1 pct vs 5.2 pct previous release.
- China’s fixed asset investment stands at 5.2 pct vs 5.4 pct previous release (expected 5.4).
We prefer to take long position on USD/CNY only above 7.0303, stop loss at 7.0073 and target of 7.0540/7.07.
By Aarti Panchal