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Price Signal Summary - USDBRL Bear Cycle Extends

LATAM FX
  • USDMXN remains below its most recent high and is trading lower today. The trend outlook is bullish and price has remained above both the 20- and 50-day EMAs. Scope is seen for a climb towards $18.6172, the 76.4% retracement of the Mar 20 - Jul 28 downleg. A break of this level would open 19.2322, the Mar 20 high. The bull trigger is 18.4863, the Oct 6 high. On the downside, key support has been defined at 17.3498, the Sep 29 low. Initial firm support lies at 17.7548, the Oct 12 low.
  • USDBRL remains below its recent highs and the p[air is trading lower today. The current bear leg is considered corrective, however, price has traded through support at 4.9883, the Sep 29 low. This exposes 4.9450, trendline support drawn from the Jul 28 low. The trendline also represents an important area of support and if breached would expose 4.8408, the Sep 19 low. Initial resistance to watch is 5.1021, the Oct 13 high. A break would be bullish.

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