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Further Downside Pressure Expected For USDCLP

CHILE
  • Further appreciation for the Chilean Peso is expected and here is an update of the technical outlook and levels to be considered on the downside for USDCLP:
  • USDCLP remains in a bear cycle and further weakness is likely near-term. The recent leg lower resulted in a breach of trendline support drawn from the May 10, 2021 low and a break of the 50-day EMA, suggesting scope for a pullback towards 798.65 next, Nov 22 low.
    • The next support resides at 788.22 - Nov 10, 2021 low.
    • Below here 783.23 represents the 50.0% retracement of the May - Dec bull cycle before 777.48 - the Sep 15, 2021 low.

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