LATAM FX: Price Signal Summary – USDCLP Support Remains Exposed
May-21 13:17
- The trend condition in USDMXN is unchanged, it remains bearish and the pair traded to a fresh cycle low, yesterday. This once again confirms a resumption of the downtrend and maintains the sequence of lower lows and lower highs. Note that moving average studies are in a bear mode position, highlighting a clear downtrend. The move down opens 19.2429, the Oct 14 2024 low. A break of this level would expose 19.1120, the Oct 4 2024 low. First resistance is at 19.7819, the May 6 high.
- USDBRL is unchanged and the pair maintains a bearish tone. Price is trading below the 50-day EMA, at 5.7359. Scope is seen for a deeper retracement and attention is on 5.5933, the Apr 3 low and a key support. It has been pierced, a clear break of it would open 5.4969, the Oct 8 ‘24 low. Firm resistance to watch is 5.7632, the May 7 high. Clearance of this level would highlight a potential reversal.
- USDCLP is trading in a range. A bear threat remains present following recent weakness and short-term gains are considered corrective. Scope is seen for a deeper retracement towards 914.00, the Mar 18 low. Resistance to watch is 961.64, the Apr 30 high. Clearance of this level would signal a stronger reversal and refocus attention on 1007.75, the Apr 9 high.
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