- USD/CNY is currently trading around 6.5840 marks.
- It made intraday high at 6.59 and low at 6.5830 levels.
- Intraday bias remains bearish till the time pair holds key resistance at 6.5924 levels.
- Pair trades in tight range in between 6.5750 to 6.59 mark. A sustain break of either side will take the parity towards new directions.
- On the top side, a sustained close above 6.5930 marks will test key resistance at 6.6042 (January 07, 2016 high) marks.
- Alternatively, reversal from key resistance will drag the parity down towards key supports at 6.5788, 6.5735, 6.5510(20D EMA), 6.5369, 6.5758, 6.4910, 6.4721 and 6.4531 levels.
- Important to note here that, 20D EMA, 30D and 55D EMA heads up, which confirms bullish trend. Current downside movement is short term trend correction only.
- PBOC sets Yuan mid-point at 6.5935/ dollar vs last close 6.5900.
Positioning is inconclusive at this point, with prices offering no clear cut signal to initiate a long or short trade. We will continue to remain on sidelines for the time being.
