• FxWirePro: Chinese Yuan trades flat despite lower than expected industrial production, retail sales data

    Source: FxWire Pro - Technicals / 15 Mar 2020 23:54:08   America/New_York

    • USD/CNY is currently trading around 7.0015 marks.
       
    • It made intraday high at 7.0086 and low at 6.9904 levels.
       
    • Intraday bias remains slightly bearish till the time pair holds key resistance at 7.0282 mark.
       
    • A sustained close above 7.0282 marks will test key resistances at 7.0388, 7.0425, 7.05, 7.0670 and 7.1030 marks respectively.
       
    • Alternatively, a daily close below 7.0035 will drag the parity down towards key supports at 6.9732, 6.9510, 9.94, 6.9240, 6.90 and 6.8788 marks respectively.
       
    • Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
       
    • China’s industrial production stands at -13.5 pct vs 6.9 pct previous release (expected -3.0).
       
    •  China’s fixed asset investment stands at -24.5 pct vs 5.4 pct previous release (expected -2.0 pct).
       
    • China’s retail sales stands at -20.5 pct vs 8.0 pct previous release (expected -4.0).
       
    • China’s unemployment rate stands at 6.2 pct vs 5.2 pct previous release.

    We prefer to take long position in USD/CNY only above 7.01, stop loss at 6.9732 and target of 7.0282/7.0388/7.05.

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