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Price Signal Summary: USDBRL Holds On To Its Recent Gains

LATAM FX
  • USDMXN maintains a softer tone following last week’s move lower and despite yesterday’s gains. The recent reversal from the Jun 16 high of 20.7014, is considered corrective, however, there remains potential for a deeper retracement near-term. Price has traded below both the 20- and 50-day EMAs and a continuation lower would open 19.6185, the Jun 10 low. Key resistance is unchanged at 20.7014, a break would confirm a resumption of bullish activity.
  • USDBRL is consolidating and trading at its recent highs. The pair maintains a firmer tone following last week’s gains and price has breached key resistance at 5.2090, the May 12 high. The break strengthens bullish conditions and opens 5.3083 initially, 61.8% of the Dec 21 ‘21 - Apr 5 bear leg. On the downside, initial support is seen at 5.0869, the 20-day EMA.
  • USDCLP maintains a bullish tone following last week’s move higher. Recent gains resulted in a break of key resistance at 871.60, the May 12 high, and the major hurdle for bulls at 878.86, the Mar 19 2020 high. This signals potential for further gains beyond the 900.00 handle, towards 931.09, the 1.0236 projection of the Mar 29 - May 12 - Jun 3 price swing. Initial firm support is at 874.65, the 20-day EMA.

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