FxWirePro: Chinese yuan trades almost flat as S&P lowers sovereign credit rating

• USD/CNY is currently trading around 6.5887 marks.
   
• It made intraday high at 6.5905 and low at 6.5719 levels.
   
• Intraday bias remains neutral till the time pair holds key support at 6.5700 mark.
   
• A sustained close above 6.5860 marks will test key resistances at 6.5971, 6.6013, 6.6227, 6.6673 and 6.6735 marks respectively.
   
• Alternatively, a daily close below 6.5860 will drag the parity down towards key supports at 6.5700, 6.5635, 6.5456, 6.5371, 6.5205, 6.4829, 6.4772, 6.4510, 6.4429, 6.4345, 6.4119 and 6.4060 marks respectively.
   
• PBOC sets yuan mid-point at 6.5861/ dlr vs last close 6.5922.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.
   
• S&P lowered the long-term sovereign credit ratings on China to 'A+' from 'AA-' and the short-term rating to 'A-1' from 'A-1+'.

We prefer to take long position in USD/CNY around 6.5840, stop loss at 6.5690 and target of 6.6227.

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