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Dollar Gradually Extending Gains, Weighing On Local Currencies

LATAM FX
  • LATAM FX: Greenback gradually extending gains with EURUSD honing in on the 1.1750 lows and the dollar index showing gains of 0.5% on the session.
    • USDMXN takes out the best levels of the day and hovering just below the week's highs at the 20.00 mark.
    • USDBRL not quite at day's highs, but certainly consolidating the BRL retreat from Thursday. For technical bulls, the trigger for a resumption of gains is 5.3130, the Jul 8 high.
    • USDCLP extending gains and confirming the recent bullish technical outlook. The most recent breach of 777.00, the Nov 24 2020 high, further cements the bullish price view and the underlying uptrend. Additionally, the 50% retracement from the March 2020 – May 2021 price swing comes at 784.59 has been breached and the October 2020 high is the next resistance point of note at 803.50.

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