- USD/CNY is currently trading around 6.8026 marks.
- It made intraday high at 6.8255 and low at 6.7937 levels.
- Intraday bias remains slightly bearish for the moment.
- A sustained close above 6.8255 marks will test key resistances at 6.8072, 6.84, 6.8530 and 6.87 marks respectively.
- Alternatively, a daily close below 6.8255 will drag the parity down towards key supports at 6.80, 6.7813, 6.7525, 6.7422, 6.7594, 6.7345, 6.7210, 6.7000 and 6.6853 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
- PBOC sets yuan mid-point at 6.7912/ dlr vs last close 6.8255.
- China sets yuan mid-point at weakest level since Jan 25, 2019.
We prefer to take long position on USD/CNY only above 6.8255, stop loss at 6.78 and target of 6.8530.
