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Price Signal Summary: USDBRL Tests Its Key Resistance

LATAM FX
  • USDMXN is trading closer to its recent lows, following the recent move away from the Jun 16 high of 20.7014. The pullback is considered corrective and a bullish outlook remains intact following the rally between May 30 - Jun 16. Recent gains resulted in a print above 20.6378, the Apr 28 high. It marks an important resistance and a clear break would suggest potential for an extension higher. This would open 20.6830 (tested) and 20.9829, the 61.8% and 76.4% retracements of the Mar - May bear leg. Key support has been defined at 19.4136, May 30 low. Initial support is seen at 19.9355, the Jun 13 low.
  • USDBRL maintains a firmer tone following recent gains and attention is on key resistance at 5.2090, the May 12 high. The resistance has been tested today, a clear break would strengthen bullish conditions and open 5.3083, 61.8% of the Dec 21 ‘21 - Apr 5 bear leg. On the downside, initial support is seen at 4.0074, the 20-day EMA.
  • USDCLP maintains a bullish tone and has traded higher once again today. Recent gains have resulted in a break of key resistance at 871.60, the May 12 high, and the major hurdle for bulls at 878.86, the Mar 19 2020 high. This signals potential for a climb towards the 900.00 handle. Initial firm support is at 846.43, the Jun 10 high and a gap low on the daily chart. First support is seen at 871.60, May 12 high.

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