Free Trial

Price Signal Summary - Pullback In USDMXN Extends

LATAM FX
  • 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.
273 words

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.
  • 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.