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FxWirePro: USD/CNY breaks key support at 6.8996, PBOC sets yuan mid-point at 6.8924

  • USD/CNY is currently trading around 6.8912 marks.
     
  • It made intraday high at 6.9002 and low at 6.8807 levels.
     
  • Intraday bias remains bearish till the time pair holds key resistance at 6.9182 mark.
     
  • A sustained close above 6.9182 marks will test key resistances at 6.9248, 6.94 and 6.9648 marks respectively.
     
  • Alternatively, a daily close below 6.8996 will drag the parity down towards key supports at 6.8628, 6.8525, 6.8210, 6.80 and 6.7813 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 sets yuan mid-point at 6.8924/ dlr vs last close 6.9005.

We prefer to take short position on USD/CNY around 6.8950, stop loss 6.9200 and target of 6.8628/6.8525.

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