- USD/CNY is currently trading around 6.9967 marks.
- It made intraday high at 7.0214 and low at 6.9935 levels.
- Intraday bias remains bearish till the time pair holds key resistance at 7.0207 mark.
- A sustained close above 7.0207 marks will test key resistances at 7.0388, 7.07 and 7.0920 marks respectively.
- Alternatively, a daily close below 7.0207 will drag the parity down towards key supports at 6.9550, 6.9210, 6.90, 6.8658, 6.84 and 6.8222 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
We prefer to take short position on USD/CNY around 7.00, stop loss at 7.0215 and target of 6.9550.