June 27, 2022 12:59 GMT
- USDMXN maintains a softer tone following last week’s move lower and extension of the recent reversal from the Jun 16 high of 20.7014. The pullback is considered corrective, however, there is also the risk of a deeper retracement near-term. Price is 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 maintains a firmer tone following last week’s gains, and the pair is trading at its recent highs. Price has breached key resistance at 5.2090, the May 12 high. A clear break would also strengthen bullish conditions and open 5.3083 initially, 61.8% of the Dec 21 ‘21 - Apr 5 bear leg. On the downside, initial support is seen at 5.0499, the 20-day EMA.