- USD/CNY is currently trading around 7.0686 marks.
- It made intraday high at 7.0816 and low at 7.0656 levels.
- Intraday bias remains bearish for the moment.
- A sustained close above 7.0920 marks will test key resistances at 7.1152, 7.1476, 7.1548, 7.1877, 7.2095, 7.3645 and 7.58 marks respectively.
- Alternatively, a daily close below 7.0674 will drag the parity down towards key supports at 7.0632, 7.0474, 7.0108, 6.97, 6.9297 and 6.88 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart. Current downside movement is short term trend correction only.
- PBOC interest rate stands at 4.20 pct vs previous release 4.20 pct.
- China house price data stands at 8.4 pct vs 8.8 pct previous release.
We prefer to take short position on USD/CNY around 7.0700, stop loss at 7.0850 and target 7.0474/7.0108.
By Aarti Panchal