- USD/CNY is currently trading around 7.0883 marks.
- It made intraday high at 7.09 and low at 7.0798 levels.
- Intraday bias remains bullish till the time pair holds key support at 7.0710 mark.
- A sustained close above 7.0774 marks will test key resistances at 7.0905, 7.0982, 7.1022, 7.1095 and 7.1266 marks respectively.
- Alternatively, a daily close below 7.0710 will drag the parity down towards key supports at 7.0650, 7.0525, 7.0449, 7.0319, 7.0285, 7.01, 7.0076, 6.9857 and 6.9510 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
- PBoC sets yuan mid point at 7.0752 vs last close 7.0736 mark.
- Pair opens gap up at 7.0798 mark vs previous close at 7.0720 mark.
We prefer to take long position in USD/CNY around 7.0850, stop loss at 7.0750 and target of 7.1022/7.1095.
