• FxWirePro: Chinese yaun trades marginally higher on robust house price data

    Source: FxWire Pro - Technicals / 17 Jul 2018 03:15:10   America/New_York

    • USD/CNY is currently trading around 6.6814 marks.
       
    • It made intraday high at 6.6895 and low at 6.6744 levels.
       
    • Intraday bias remains slightly bearish till the time pair holds key resistance at 6.7050 mark.
       
    • A sustained close above 6.6899 marks will test key resistances at 6.7050, 6.7167, 6.7310, 6.7444 and 6.7676 marks respectively.
       
    • Alternatively, a daily close below 6.6653 will drag the parity down towards key supports at 6.6518, 6.6340, 6.6170, 6.5989, 6.5758, 6.5500, 6.5340 and 6.5008 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 6.6821 / dlr vs last close 6.6924.
       
    • China sets yuan mid-point at weakest since Aug 9, 2017.
       
    • China June house prices yy increase to 5 % vs previous 4.7 %.

    We prefer to take short position on USD/CNY around 6.6850, stop loss 6.7050 and target of 6.6340.

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