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Price Signal Summary - USDBRL Bears Remain In The Driver’s Seat

  • USDMXN is consolidating. The downtrend remains intact and last week’s fresh lows reinforce current conditions. The bear trigger at 17.4207, the May 15 low, has been cleared and this confirms a resumption of the downtrend. Moving average studies remain in a bear mode position, reinforcing current conditions. Scope is seen for a move towards 16.9791 and 16.7758, the 1.618 and 1.764 projections of the Jun 2 - Mar 9 - Mar 20 price swing. Resistance to watch is the 50-day EMA, which intersects at 17.6797. This is a key short-term hurdle for bulls, where a break would signal a reversal. The 20-day EMA intersects at $17.3818.
  • USDBRL remains in a downtrend and recent price action has reinforced this condition. The sell-off on Jun 9 resulted in a break of 4.8859, the May 15 low and this confirmed a range breakout and a resumption of the downtrend. A continuation lower would open 4.7490, Jun 6 2022 low and 4.6910, the May 30 2022 low. On the upside, initial firm resistance is at 4.9715, the 50-day EMA. The 20-day EMA intersects at 4.9013.
  • USDCLP continues to trade in a range. The pair pierced (in mid-May) support at 783.10, the Mar 31 low. A clear break of this level would expose the key bear trigger at 776.28, the Feb 3 low. Clearance of this support would confirm a resumption of the broader downtrend. For now, the price remains above the May 15 low, a stronger bounce would refocus attention on key short-term resistance at 837.15, the Mar 17 high.

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