• USDMXN is trading lower this week. The pair is approaching an important support at 17.745, the 50-day EMA. A clear break of this average would undermine the bullish theme. This would signal scope for an extension towards 17.4466, the Jun 6 low. While the 50-day EMA remains intact, it is possible that the latest bear leg is a correction. 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. Initial firm resistance is at 18.5988.
  • The latest pullback in USDBRL still appears to be a correction - for now. 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 continuation of the medium-term uptrend. A resumption of gains would open 5.7134, the 1.382 projection of the Dec 27 ‘23 - Apr 16 - May 3 price swing. On the downside, support at the 20-day EMA has been breached. The 50-day EMA lies at 5.3385. A clear break of this average would highlight a potential reversal.
  • The USDCLP short-term trend condition is unchanged. The pair maintains a bullish tone and the latest pullback appears to be a correction. A resumption of gains would signal scope for a climb towards 964.03, 76.4% of the bear leg between Apr 16 and May 20. First support to watch lies at 908.75, the Jun 12 low. A break would undermine the bullish theme. The key support and bear trigger lies at 881.73, the May 20 low.

LATAM FX: Price Signal Summary - Pullback In USDMXN Extends

Last updated at:Jul-10 12:57By: Taso Anastasiou
  • USDMXN is trading lower this week. The pair is approaching an important support at 17.745, the 50-day EMA. A clear break of this average would undermine the bullish theme. This would signal scope for an extension towards 17.4466, the Jun 6 low. While the 50-day EMA remains intact, it is possible that the latest bear leg is a correction. 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. Initial firm resistance is at 18.5988.
  • The latest pullback in USDBRL still appears to be a correction - for now. 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 continuation of the medium-term uptrend. A resumption of gains would open 5.7134, the 1.382 projection of the Dec 27 ‘23 - Apr 16 - May 3 price swing. On the downside, support at the 20-day EMA has been breached. The 50-day EMA lies at 5.3385. A clear break of this average would highlight a potential reversal.
  • The USDCLP short-term trend condition is unchanged. The pair maintains a bullish tone and the latest pullback appears to be a correction. A resumption of gains would signal scope for a climb towards 964.03, 76.4% of the bear leg between Apr 16 and May 20. First support to watch lies at 908.75, the Jun 12 low. A break would undermine the bullish theme. The key support and bear trigger lies at 881.73, the May 20 low.

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