LATAM FX: Price Signal Summary - USDBRL Heads North
Jun-26 13:15
- The current bull cycle in USDMXN remains in play and the most recent pullback, from the Jun 12 high, still appears to be a correction. Support to watch lies at 17.9900, the 20-day EMA. It has been pierced, a clear break would expose the 50-day EMA at 17.5284. The rally early this month resulted in a break of 18.2137, the Apr 19 high, strengthening a bullish condition. A resumption of gains would open the 19.00 handle and if this level gives way, it would expose 19.2083, the 50.0% retracement point of the Nov 26 ‘21 - Apr 9 ‘24 bear cycle.
- Bullish conditions in USDBRL remain intact and a fresh cycle high today, confirms a resumption of the uptrend once again. Recent gains have resulted in a break of key resistance at 5.2869, the Apr 16 high and a bull trigger. The clear break of that hurdle confirmed a resumption of the medium-term uptrend. This opens 5.5296, the Nov 17 2022 high and a key resistance. A break would open the 5.60 handle. On the downside, initial support to watch lies at 5.3525, the 20-day EMA.
- USDCLP maintains a firmer tone and the contract traded higher yesterday. Price recently cleared the 50-day EMA. This strengthened the short-term bullish condition and signals scope for a stronger recovery near-term. Sights are on 948.30, 61.8% of the bear leg between Apr 16 and May 20. It has been pierced, a clear break would further strengthen a bullish condition and open 964.03, the 76.4% retracement point. Note that moving average studies remain in a bear-mode position. This suggests that the recent recovery is potentially a correction. First support to watch lies at 908.75, the Jun 12 low. The key support and bear trigger lies at 881.73, the May 20 low.
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FRANCE T-BILL AUCTION RESULTS: 13/14/24/51-week BTFs
May-27 12:56
| Type | 13-week BTF | 14-week BTF | 24-week BTF | 51-week BTF |
| Maturity | Aug 28, 2024 | Sep 4, 2024 | Nov 14, 2024 | May 21, 2025 |
| Amount | E3.596bln | E399mln | E1.897bln | E1.497bln |
| Target | E3.2-3.6bln | E0.0-0.4bln | E1.5-1.9bln | E1.1-1.5bln |
| Previous | E3.494bln | #N/A | E1.695bln | E1.795bln |
| Avg yield | 3.734% | 3.697% | 3.657% | 3.503% |
| Previous | 3.746% | #N/A | 3.657% | 3.467% |
| Bid-to-cover | 2.74x | 7.82x | 4.17x | 5.6x |
| Previous | 3.21x | #N/A | 4.13x | 4.15x |
| Previous date | May 21, 2024 | #N/A | May 21, 2024 | May 21, 2024 |
