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Price Signal Summary: USDBRL Pulls Away From Its Channel Base

  • USDMXN attention is on the key resistance at 20.9790, Nov 3 high. A break of this hurdle for bulls would confirm a resumption of the uptrend and signal potential for a stronger rally above the 21.00 handle towards 21.1550, 76.4% of the Mar - Jun sell-off. Key support lies at 20.2517, Nov 9 low. Initial support is at 20.5492, the 20-day EMA.
  • USDBRL continues to recover from recent lows. An initial firm support has been defined at 5.3885, Nov 11 low. This lies just ahead of the bull channel base that intersects at 5.3780 today. The channel base represents a key support where a break is required to suggest potential for a stronger move lower. This would expose the 5.20 handle. Resistance to watch is at 5.6068, Nov 5 high. A break would expose the top of the channel at 5.7648.
  • USDCLP is holding onto this week's gains. Former key resistance at 8.3280, Oct 15 high has been cleared and this confirms a resumption of the uptrend that started May 10. The gains signal scope for 850.00 while further out, there appears to be potential for a climb towards 878.86, the Mar 19, 2020 high. The 20-day EMA at 809.95 offers initial support.

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