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Price Signal Summary - USDBRL Resumes Its Medium-Term Downtrend

  • USDMXN conditions remain bearish and moving average studies continue to highlight a downward trend direction. Support at 16.9811, the Jul 5 low, has recently been cleared. The break confirmed a resumption of the primary downtrend and marks a continuation of the price sequence of lower lows and lower highs. The focus is on 16.4472, the 2.0 projection of the Jun 2 - Mar 9 - Mar 20 price swing. Resistance to watch is the 50-day EMA, which intersects at 17.2333. This is a key short-term hurdle for bulls, where a clear break would signal a reversal.
  • USDBRL remains in a downtrend and yesterday’s move lower confirmed a resumption of the medium-term bear cycle - support at 4.7513, the Jun 22 low, has been cleared. This opens 4.6910 next, the May 30 2022 low. Key resistance is at 4.8714, the 50-day EMA. Initial resistance is at 4.8151, the 20-day EMA.
  • USDCLP traded higher Friday and started the week on a firm note yesterday. A short-term uptrend remains intact. The pair has recently traded through resistance at 815.47, the May 25 high. The clear break of this level signals scope for a climb towards 837.15, the Mar 17 high and a key resistance. Initial key support has been defined at 803.20, the Jul 20 low.

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