LATAM FX: Price Signal Summary: USDMXN Outlook Remains Bearish
Jun-09 13:40
- USDMXN is unchanged and the pair continues to consolidate. A bearish theme remains intact following the recent breach of support at 19.7274, Apr 4 low. This confirmed a resumption of a bear trend that began on Nov 26, 2021. The move lower opens 19.1560, the Mar 3 2020 low. On the upside, initial resistance is at 19.9827, the 50-day EMA.
- USDBRL remains vulnerable and the latest recovery is considered corrective. Price has recently breached support at 4.8597, Apr 29 low. This, together with a clear break of the 4.80 handle, strengthens the current bearish cycle and signals scope for 4.5836, Apr 5 low and a key support. Note too that moving average studies have crossed into a bear mode condition. Initial resistance is at 4.9336, the Jun 7 high.
- USDCLP short-term conditions remain bearish despite this week’s gains. Price has recently traded below both the 20- and 50-day EMAs and last week’s move lower reinforced current bearish conditions. The focus is on the 809.98 retracement, 61.8% of the Mar 29 - May 12 upleg. This level has been tested, a clear break would open 800.00. Initial resistance is at 833.00, the Jun 7 high.
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