LATAM FX: Price Signal Summary – USDBRL Approaches Key Support
Apr-30 12:08
- USDMXN is unchanged and maintains a softer tone following recent weakness. Price is trading at its recent lows. The pair has recently cleared a key support at 19.8392, the Apr 3 low. The break highlights a reversal and confirms a range breakout. This move lower opens 19.3711, 38.2% of the Apr 9 ‘24 - Feb 3 bull cycle. On the upside, initial firm resistance is at 20.0948, the 50-day EMA. A break above this average is required to signal a potential reversal. First resistance is at 19.8473, the Mar 14 low.
- USDBRL maintains a bearish tone. The pair has breached support around the 50-day EMA, at 5.7819. This signals scope for a deeper retracement and attention is on 5.5933, the Apr 3 low and a key support. Clearance of this level would open 5.4969, the Oct 8 ‘24 low. Initial firm resistance to watch is 5.9187, the Apr 11 high. A break of this level would highlight a potential reversal. The 50-day EMA, at 5.7819, is first resistance.
- The latest move down in USDCLP has cancelled a recent bullish theme. The pair has cleared support at the 50-day EMA, at 954.29. The breach signals scope for a deeper retracement and opens 914.00, the Mar 18 low. Resistance to watch is 973.65, the Apr 16 high. A break of this level would signal a possible reversal and refocus attention on 1007.75, the Apr 9 high. Initial resistance is at the 50-day EMA, at 954.29.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
GERMAN DATA: Rounded HICP a tenth below consensus; CPI in line with tracking est
Mar-31 12:02
- German HICP came in a tenth below consensus at 2.3%Y/Y (versus consensus of 2.4%Y/Y, prior 2.6%) with the M/M print at 0.4% (0.4% consensus although 0.5% was the modal expectation and analysts were split between 0.3-0.5%).
- The national CPI came in at 2.2%Y/Y (MNI tracking 2.2-2.3%, consensus 2.2%, prior 2.3%), M/M at 0.3% (in line with MNI tracking of 0.3-0.4% and consensus of 0.3%).
SPAIN AUCTION PREVIEW: On offer this week
Mar-31 12:01
Tesoro Publico has announced it will be looking to sell a combined E5.5-6.5bln of the following Bono/Oblis at its auction this Thursday, April 3:
- the 2.40% May-28 Bono (ISIN: ES0000012O59)
- the 3.10% Jul-31 Obli (ISIN: ES0000012N43)
- the 3.90% Jul-39 Obli (ISIN: ES0000012L60)
Tesoro Publico has additionally announced it will be looking to sell E0.25-0.75bln of the 1.00% Nov-30 Obli-Ei (ISIN: ES00000127C8) at that auction.
BUNDS: National CPI Due Imminently
Mar-31 11:57
Bund futures operate off session lows ahead of the German nation CPI reading, last 129.15.
- If the data comes in the soft side it is worth remembering that session highs in futures are located at 129.59, with the March 5 low in 10-Year yields located at 2.654% (today’s low is 2.659%).
- If we get an upside surprise in inflation then bears will look to close opening gaps in Bund futures (128.91) and 10-Year yields (2.727%).
