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Price Signal Summary - USDBRL Rally Accelerates

LATAM FX
  • The medium-term trend direction in USDMXN remains bearish, however near-term, a corrective cycle remains in play. The pair has traded through both the 20- and 50-day EMAs, strengthening a short-term bullish theme. The next resistance to watch is 16.9473, the Mar 19 high. A break of this hurdle would open the 17.00 handle. Initial support is at 16.5418, yesterday’s low.
  • A bullish theme in USDBRL remains intact and last week’s gains together with this week’s follow through, reinforce current conditions. Today’s climb has resulted in a break of resistance at 5.2202, the Oct 6 ’23 high, strengthening bullish conditions. The strong impulsive nature of the latest rally signals scope for a climb towards 5.3330, 76.4% of the Nov 11 ‘23 - Jul 28 ‘23 bear leg. Support to watch lies at 5.0490, the 20-day EMA.
  • The USDCLP medium-term trend condition remains bullish and the latest recovery is a positive development. Support to watch lies at 935.63, the Mar 15 low. A clear break of this level would highlight a stronger reversal and signal scope for an extension towards 922.80 initially, 50.0% of the Dec 1 ‘23 - Feb 26 bull leg. On the upside, a break of resistance and the bull trigger at 990.67, the Feb 26 high, would confirm a resumption of the uptrend and open 1000.00.

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