LATAM FX: Price Signal Summary - USDBRL Bulls Remain In The Driver’s Seat
Jun-13 13:07
- USDMXN traded sharply higher last week and the pair has extended the bull cycle this week. The latest rally cancels a recent bearish theme and has also resulted in a break of 18.2137, the Apr 19 high. This confirms a resumption of the broader uptrend that started Apr 9. 18.5129, 38.2% of the Nov 26 ‘21 - Apr 9 ‘24 bear cycle, has been cleared too. Sights are on the 19.00 handle and if this level gives way, it would open 19.2083, the 50.0% retracement point. Support to watch lies at 17.5878, the 20-day EMA.
- USDBRL bulls remain in the driver’s seat. Last week’s bullish extension and this week’s climb, reinforces this theme. Gains have resulted in a break of key resistance at 5.2869, the Apr 16 high and bull trigger. The clear break of this hurdle confirms a resumption of the uptrend and opens 5.4787, the Jan 4 2023 high. On the downside, initial support to watch lies at 5.2516, the 20-day EMA.
- A bear trend in USDCLP remains intact and recent bearish price action reinforces current conditions. The latest recovery appears to be a correction - for now. The next Important resistance is seen at 926.09, the 50-day EMA. It has been tested. A clear break of it would signal scope for a stronger correction towards 940.93, May 8 high. For bears, the break in early May of support at 935.63, the Mar 15 low, marked an important technical breach and highlighted a stronger reversal. 886.96, the 76.4% retracement of the Dec 1 ‘23 - Feb 26 bull leg, has been pierced. A clear break would open 870.45, the Dec 29 low.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
STIR: Effective Fed Funds Rate
May-14 13:06
FRBNY EFFR for prior session:
- Daily Effective Fed Funds Rate: 5.33% (+0.00), volume: $76B
- Daily Overnight Bank Funding Rate: 5.32% (+0.00), volume: $269B
CROSS ASSET: Broader reversal across multi assets
May-14 12:55
- Yen comes under renewed pressure, as the dust settles post the US PPI beat, with the lower revisions providing some price reversal across multi assets, Govies, Rates, Equities, FX and Commodities.
- Bund, Tnotes, Estoxx and Emini are pretty much back at pre Data levels, will all the focus turning to the US CPI Tomorrow.
- For The Yen, AUDJPY is now above the Friday 26 April high, and next Psychological area will move down to 104.00 initially.
- EURJPY is also close to that late Friday 26th April spike situated at 169.39, so far printed a 169.20 high.
MNI: US REDBOOK: MAY STORE SALES +6.3% V YR AGO MO
May-14 12:55
- MNI: US REDBOOK: MAY STORE SALES +6.3% V YR AGO MO
- US REDBOOK: STORE SALES +6.3% WK ENDED MAY 11 V YR AGO WK
