- USD/CNY is currently trading around 7.0245 marks.
- It made intraday high at 7.0290 and low at 7.0213 levels.
- Intraday bias remains bullish till the time pair holds key support at 7.00 mark.
- A sustained close above 7.0245 marks will test key resistances at 7.0303, 7.0540 and 7.0920 marks respectively.
- Alternatively, a daily close below 7.0245 will drag the parity down towards key supports at 7.0074, 6.9765, 6.9525, 6.9297 and 6.88 marks respectively.
- 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.
We prefer to take long position on USD/CNY around 7.02, stop loss at 7.0074 and target of 7.0540.