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Price Signal Summary - USDBRL Pierces A Key Short-Term Resistance

LATAM FX
  • USDMXN rallied sharply higher Monday extending the recovery that started last week. Price has breached both the 20- and 50-day EMAs and has traded above the 19.00 handle. The next key short-term resistance is at 19.2906, the Feb 6 high. A break would pave the way for strength towards the 19.50 handle and 19.5882, the Dec 30 high. 18.4176, the 20-day EMA, is the first support to watch.
  • USDBRL short-term conditions remain bullish and this week’s gains reinforce this condition. Today’s price activity has resulted in a test above resistance at 5.3073, the Feb 10 high and a key hurdle for bulls. The break opens 5.3518 next, the 76.4% retracement of the Jan 4 - Feb 2 bear leg, ahead of the 5.4000 handle. On the downside, key support to watch lies at 5.1012, the Mar 8 low. A break of this level would instead signal scope for a return to 4.9410, the Feb 2 low. Initial support lies at 5.1959, the 50-day EMA.
  • USDCLP breached the 800.00 handle last week. A continuation lower would expose support and the bear trigger at 776.28, the Feb 3 low. Clearance of this level would confirm a resumption of the broader downtrend and this would open 771.89, the Mar 29 2022 low. Key resistance has been defined at 836.45, the Feb 27 high, where a break is required to reinstate a bullish theme and highlight scope for a stronger recovery.
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