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Price Signal Summary - USDBRL Bulls Remain In The Driver's Seat

LATAM FX
  • USDMXN remains below its recent highs. The pair, earlier this month, pierced resistance at 17.3959, the Jul 7 high. A clear break of this hurdle would signal scope for a stronger recovery and open 17.5977, the Jun 5 high. The broader trend condition is bearish and moving average studies continue to highlight a downtrend. The bear trigger is 16.6262, the Jul 28 low. Initial support to watch lies at 16.9118, the Aug 10 low.
  • The current USDBRL bull cycle remains in play. Price has recently cleared the 20- and 50-day EMAs and this strengthens a short-term bullish theme. A key resistance at 4.9499, the Jul 6 high has also been breached. This is seen as an important short-term breakout and opens 5.0039, the Jun 2 high. Further out, an extension higher would expose 5.1277, the May 31 high. Initial support to watch is 4.8551, the 20-day EMA. Key support has been defined at 4.6964, the Jul 28 low.

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