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Price Signal Summary: USDBRL Bulls Have Their Sights On Key Resistance

  • USDMXN traded higher again yesterday and remains firm. The climb this week has resulted in a print above 20.6378, the Apr 28 high. It marks an important resistance and a clear break would suggest potential for an extension higher. This would open 20.6830 (tested) and 20.9829, the 61.8% and 76.4% retracements of the Mar - May bear leg. Key support has been defined at 19.4136, May 30 low. Initial support is at 19.9099, the 20-day EMA.
  • USDBRL maintains a firmer tone following recent gains. The recent recovery is still considered corrective, however, the stronger rally does signal scope for a continuation higher. Key resistance to watch is 5.2090, the May 12 high. A breach of this level would strengthen bullish conditions. On the downside, weakness through support at 4.6910 would reinstate a bearish threat and expose 4.5836, the Apr 5 low. Initial support is 4.9153, the 20-day EMA.
  • USDCLP traded sharply higher on Jun 10 to confirm a reversal of the bear cycle between May 12 - Jun 3. The USD has also traded higher this week and remains firm. The rally has resulted in a print above key near-term resistance at 871.60, the May 12 high. Clearance of this resistance would expose the major hurdle for bulls at 878.86, the Mar 19 2020 high. Key short-term support has been defined at 807.85. Initial support is at 830.94, the Jun 13 low.

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