CHILE: USDCLP Breaches Support, China Seen Investing More In Local Power Network
Sep-17 11:16
- The Chilean peso continued to trade on the front-foot yesterday as the underlying trend of dollar weakness picked up pace ahead of today’s Fed meeting. USDCLP closed another 0.35% lower around 948, its lowest level since July 23.
- The move lower in the pair this week has resulted in the breach of a key support at 949.84, the Aug 13 low. Clearance of this level undermines the recent medium-term bullish theme, with scope seen for a move towards the 940.00 handle. On the upside, initial firm resistance to watch is 961.57, the 20-day EMA.
- Looking ahead, the data calendar remains clear on Wednesday, ahead of national holidays the next two days, which BBVA says could weigh on the CLP today. Next week, August PPI data cross on Sep 24, followed by the BCCh minutes on Sep 26.
- In other news, China Southern Power Grid is said to be in advanced talks to acquire a controlling stake in Chile’s biggest power transmission company Transelec, according to a report on Bloomberg. It says that a potential deal could be valued at more than $4bn and may be reached in the coming weeks. However, it would require approval from Chilean regulators, which the report says could still be challenging given China’s already significant ownership of the local power distribution market.
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OUTLOOK: Price Signal Summary - Gold Remains Above Support
Aug-18 11:12
- On the commodity front, a bull cycle in Gold remains intact and this is highlighted by moving average studies that remain in a bull-mode position. The sideways trend that has been in place since the Apr peak appears to be a corrective phase. A resumption of gains would open $3439.0, the Aug 23 high. Key resistance and the bull trigger is at $3500.1, the Apr 22 low. On the downside, first support to watch lies at $3268.2, the Jul 30 low.
- In the oil space, WTI futures remain in a clear bear cycle and the contract is trading closer to its recent lows. A key support at $62.84, the Jun 24 low, has been breached, strengthening a bearish theme. A continuation lower would open $58,17 the May 30 low. Key short-term resistance has been defined at $70.51, the Jul 30 high. Clearance of this level would cancel a bear theme. Initial resistance to watch is $64.94, the 50-day EMA.
EGB OPTIONS: Bund Put Buyer
Aug-18 11:10
RXU5 127 puts, paper pays 2.0 in 3.625k
US 10YR FUTURE TECHS: (U5) Trend Outlook Remains Intact
Aug-18 11:03
- RES 4: 113-23 76.4% retracement of the Sep’24 - Jan’25 sell-off
- RES 3: 113-07 76.4% retracement of the Apr 7 - 11 sell-off
- RES 2: 112-23 High May 1
- RES 1: 112-15+ High Aug 5
- PRICE: 111-25+ @ 11:52 BST Aug 18
- SUP 1: 111-10+ 50-day EMA
- SUP 2: 110-23+/08+ Low Aug 1 / Low Jul 15 & 16
- SUP 3: 110-03 76.4% retracement of the May 22 - Jul 1 bull leg
- SUP 4: 109-28 Low Jun 6 and 11
The underlying bullish theme in Treasury futures remains intact, supported by the recent clearance of the bull trigger at 112-12+, the Jul 1 high. A resumption of gains would open 112-23, the May 1 high and the next important resistance. Above 112-23, retracement levels are layered between 113-07 and 113-23. On the downside, key support is 110-08+, the low on Jul 15 and 16. First important support lies at 110-23+, the Aug 1 low.
