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Price Signal Summary: Recent USDBRL Highs Likely to Remain Under Pressure

LATAM FX
  • USDMXN gained Monday amid broad USD strength and the pair is circling the week's highs ahead of the Tuesday open. Despite the strong start to the week, the outlook is bearish and attention is on key support at 19.5987, Jun 9 low where a break would strengthen a bearish case and open 19.5494, Jan 21 low. Price needs to get above 20.2153, Jun 24 high to alter the picture.
  • USDBRL gapped higher Monday, but fell short of any challenge on last week's highs of 5.3130. This level will likely remain under pressure and a clear breach would bring the 100- and 200-dmas into focus at 5.3606 and 5.3774. Jun 25 low of 4.8934 remains key support.
  • The USDCLP outlook remains bullish and price is recovering further from recent lows. Price action strengthened Monday on the move through Friday's 758.45. An extension of this recovery opens 769.99, Nov 30, 2020 high. Key support is at 722.25, Jun 30 low. Initial support is at 741.36, the 20-day EMA.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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