Free Trial

LATAM FX Price Signal Summary - USDBRL Sell-Off Exposes Support At 5.0108

LATAM FX
  • The near-term outlook in USDMXN remains bearish following this week’s extension lower. Support at 19.0401, the Nov 29 low, has been cleared and this confirms a resumption of the broader bear cycle that started in Nov 2021. The move lower opens 18.7835 next, the 1.382 projection of the Jul 14 - Sep 12 - Sep 28 price swing. The 1.50 projection sits at 18.6301. On the upside, key resistance has been defined at 19.5882, the Dec 30 high. Initial firm resistance is at 19.3059, the 20-day EMA.
  • USDBRL has extended the reversal from the Jan 4 high of 5.4787. The move leaves price trading inside a broad multi-month range. Support at 5.1183, the Dec 23 low, has been breached. The break exposes 5.0108, the Aug 29/30 low. On the upside, initial key resistance has been defined at last week’s 5.4787 high. First resistance is at 5.2624, the 50-day EMA.
  • The USDCLP outlook remains bearish and the pair has traded lower this week. This confirms, once again, a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. The move lower signals scope for an extension towards 807.85, the Jun 3 low. On the upside, initial resistance is seen at 854.16, the 20-day EMA.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.