LATAM FX: Price Signal Summary – Bear Cycle In USDMXN Remains In Play
Jul-04 13:01
- The trend condition in USDMXN is unchanged and remains bearish. Moving average studies are in a bear mode position, highlighting a clear downtrend. Note too that resistance at the 50-day EMA, at 19.2325, remains intact. Potential is seen for a bearish extension towards 18.5999, the Aug 16 2024 low. A break would open 18.1837, the 61.8% retracement of the Apr 9 ‘24 - Feb 3 bull leg. Clearance of the 50-day EMA is required to undermine the trend.
- USDBRL maintains a bearish tone. The pair has recently traded below key support at 5.5933, the Apr 3 low, and sights are on the 5.40 handle, and 5.3153, the 61.8% retracement of the Jul 28 ‘23 - Dec 18 ‘24 bull cycle. Firm resistance to watch is 5.7632, the May 7 high. Clearance of this level would instead highlight a potential reversal. Initial resistance is at 5.5936, the 50-day EMA.
- A bear threat in USDCLP remains present. Scope is seen for a deeper retracement towards 914.00, the Mar 18 low. Resistance to watch is 953.35, the Jun 23 high.
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EUR: FX Exchange traded Option
Jun-04 13:00
FX Exchange traded Option, suggest a new Position, doesn't cover the 11th Sep ECB meeting:
- EURUSD (5th Sep) 1.0700p, bought for 0.0011 in 1.25k.
US TSY FUTURES: BLOCK: Large Sep'25 2Y Buy
Jun-04 12:57
- +17,000 TUU5 103-22.38, through 103-22 post data offer at 0841:55ET, DV01 $625,000.
- The 2Y contract trades 103-22.12 last (+2.38).
FOREX: USDJPY Trades Session Lows Following ADP, ISM Data Awaited
Jun-04 12:52
- The much weaker-than-expected ADP employment data has dented greenback sentiment Wednesday, most notable in the 70 pip move lower for USDJPY, which is extending session lows at typing to 143.55.
- Price action this morning fell just shy of last Friday’s highs of 144.44, and importantly, a bear cycle in USDJPY remains in play and sights remain on the next important support at 142.12, the May 27 low. As noted, clearance of this level would confirm a resumption of the bear leg and open 139.89, the Apr 22 low.
- Bank of Japan officials will closely watch the upcoming June Tankan survey, due July 1, for signs of resilience in non-manufacturers' sentiment and upward revisions to major firms’ capital investment plans, which would support its baseline view for a gradual rate-hike path, MNI understands.
