- The Yuan has weakened about 5 percent against the dollar since last August.
- Pair is currently trading at 6.5090 levels.
- It made intraday high at 6.5091 and low at 6.4945 levels.
- Intraday bias remains bullish for the moment.
- Key support falls at 6.4910 levels and daily close below will take the parity towards key support are at 6.4736 marks.
- On the other side, reversal from 6.49 levels will turn the bias bullish again and take the parity around key resistance at 6.5134/6.56 levels thereafter.
- From the data front from China, China's central bank is studying the introduction of a tax on currency transactions in an effort to curb speculation in the foreign exchange markets
We prefer to take long position in USD/CNY around 6.50, stop loss 6.4910 and target 6.5134/6.5374 levels.
