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LATAM FX: Price Signal Summary - USDMXN Trend Set-Up Remains Bullish

LATAM FX
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  • USDMXN has recently found support but for now, continues to trade below the August and September highs. The Sep 11 - 18 bear leg is considered corrective and the next key support to watch lies at 19.1994, the 50-day EMA. A clear break of this average would undermine a bullish theme and expose 18.5999, the Aug 16 low. For bulls, a resumption of gains would refocus attention on key resistance and the bull trigger at 20.2181, the Aug 5 high. Clearance of this level would confirm a resumption of the uptrend and open 20.7642, the 76.4% retracement of the bear leg between Nov ‘21 and Apr this year.                                            
  • The latest pullback in USDBRL resulted in a move through the 50-day EMA. It is still possible that the sell-off is a correction. However, the break of the 50-day average does signal scope for a deeper retracement. Attention is on the next key support at 5.3768, the Aug 19 low. Clearance of this support would strengthen a bearish threat and open 5.2405, the Jun 6 low. For bulls, a stronger recovery would refocus attention on resistance at 5.6917, the Aug 30 high and a bull trigger.  
  • A bear cycle in USDCLP remains in play. This move lower that started Sep 10, has resulted in the break of two important support points; 904.48, the Aug 26 low, and 902.00, the Jul 11 low. This signals scope for an extension towards the next key support at 881.73, the May 20 low. Initial firm resistance is seen at 926.23, the Sep 27 high.
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  • USDMXN has recently found support but for now, continues to trade below the August and September highs. The Sep 11 - 18 bear leg is considered corrective and the next key support to watch lies at 19.1994, the 50-day EMA. A clear break of this average would undermine a bullish theme and expose 18.5999, the Aug 16 low. For bulls, a resumption of gains would refocus attention on key resistance and the bull trigger at 20.2181, the Aug 5 high. Clearance of this level would confirm a resumption of the uptrend and open 20.7642, the 76.4% retracement of the bear leg between Nov ‘21 and Apr this year.                                            
  • The latest pullback in USDBRL resulted in a move through the 50-day EMA. It is still possible that the sell-off is a correction. However, the break of the 50-day average does signal scope for a deeper retracement. Attention is on the next key support at 5.3768, the Aug 19 low. Clearance of this support would strengthen a bearish threat and open 5.2405, the Jun 6 low. For bulls, a stronger recovery would refocus attention on resistance at 5.6917, the Aug 30 high and a bull trigger.  
  • A bear cycle in USDCLP remains in play. This move lower that started Sep 10, has resulted in the break of two important support points; 904.48, the Aug 26 low, and 902.00, the Jul 11 low. This signals scope for an extension towards the next key support at 881.73, the May 20 low. Initial firm resistance is seen at 926.23, the Sep 27 high.