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

LATAM FX
  • USDMXN traded sharply higher last week and the pair has extended the bull cycle this week. The latest rally cancels a recent bearish theme and has also resulted in a break of 18.2137, the Apr 19 high. This confirms a resumption of the broader uptrend that started Apr 9. 18.5129, 38.2% of the Nov 26 ‘21 - Apr 9 ‘24 bear cycle, has been cleared too. Sights are on the 19.00 handle and if this level gives way, it would open 19.2083, the 50.0% retracement point. Support to watch lies at 17.5878, the 20-day EMA.
  • USDBRL bulls remain in the driver’s seat. Last week’s bullish extension and this week’s climb, reinforces this theme. Gains have resulted in a break of key resistance at 5.2869, the Apr 16 high and bull trigger. The clear break of this hurdle confirms a resumption of the uptrend and opens 5.4787, the Jan 4 2023 high. On the downside, initial support to watch lies at 5.2516, the 20-day EMA.
  • A bear trend in USDCLP remains intact and recent bearish price action reinforces current conditions. The latest recovery appears to be a correction - for now. The next Important resistance is seen at 926.09, the 50-day EMA. It has been tested. A clear break of it would signal scope for a stronger correction towards 940.93, May 8 high. For bears, the break in early May of support at 935.63, the Mar 15 low, marked an important technical breach and highlighted a stronger reversal. 886.96, the 76.4% retracement of the Dec 1 ‘23 - Feb 26 bull leg, has been pierced. A clear break would open 870.45, the Dec 29 low.
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  • USDMXN traded sharply higher last week and the pair has extended the bull cycle this week. The latest rally cancels a recent bearish theme and has also resulted in a break of 18.2137, the Apr 19 high. This confirms a resumption of the broader uptrend that started Apr 9. 18.5129, 38.2% of the Nov 26 ‘21 - Apr 9 ‘24 bear cycle, has been cleared too. Sights are on the 19.00 handle and if this level gives way, it would open 19.2083, the 50.0% retracement point. Support to watch lies at 17.5878, the 20-day EMA.
  • USDBRL bulls remain in the driver’s seat. Last week’s bullish extension and this week’s climb, reinforces this theme. Gains have resulted in a break of key resistance at 5.2869, the Apr 16 high and bull trigger. The clear break of this hurdle confirms a resumption of the uptrend and opens 5.4787, the Jan 4 2023 high. On the downside, initial support to watch lies at 5.2516, the 20-day EMA.
  • A bear trend in USDCLP remains intact and recent bearish price action reinforces current conditions. The latest recovery appears to be a correction - for now. The next Important resistance is seen at 926.09, the 50-day EMA. It has been tested. A clear break of it would signal scope for a stronger correction towards 940.93, May 8 high. For bears, the break in early May of support at 935.63, the Mar 15 low, marked an important technical breach and highlighted a stronger reversal. 886.96, the 76.4% retracement of the Dec 1 ‘23 - Feb 26 bull leg, has been pierced. A clear break would open 870.45, the Dec 29 low.