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Price Signal Summary: USD Weakens Against MXN And BRL

LATAM FX
  • The USDMXN downtrend extends and the pair is approaching support at 20.1577, the Feb 23 low. A break of this support would strengthen bearish conditions and open the 20.00 handle. Moving averages are highlighting a possible bearish crossover. If confirmed, this would reinforce a bearish theme. Resistance to watch is at 20.6219, the 20-day EMA.
  • USDBRL has started the week on a softer note and has maintained this week’s bearish momentum The pair cleared 4.9846 on Monday , the Mar 11 low and an important bear trigger. Today’s weakness has resulted in a test and probe of key support at 4.8934, the Jun 25, 2021 low. A clear break of this support would open 4.8187, the Jun 8 2020 low. Resistance has been defined at 5.1689, the Mar 15 high.
  • USDCLP is lower but still inside its recent range. The pair remains below the Feb 24 high of 824.50. Trend conditions are bearish and short-term gains are considered corrective. Firm resistance is at 832.75, the Feb 7 high. The bear trigger is 783.51, Feb 23 low. A break would open 783.23, 50.0% of the May - Dec 2021 upleg ahead of the 780.00 handle initially.

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