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Price Signal Summary: USDBRL Tests Major Support At The Base Of Its Range

  • The USDMXN downtrend remains intact and the pair has tested support at 20.1577, the Feb 23 low. A clear break of this level would strengthen bearish conditions and open the 20.00 handle. Moving averages are highlighting a possible bearish crossover. If confirmed, this would reinforce a bearish theme. Resistance to watch is at 20.5892, the 20-day EMA.
  • USDBRL has started the week on a softer note and has maintained this week’s bearish momentum. The pair cleared 4.9846 on Monday , the Mar 11 low and an important bear trigger. Yesterday’s weakness resulted in a break of support at 4.8934, the Jun 25, 2021 low. Initial resistance is at $5.0487, the 20-day EMA.
    • Note that the monthly chart highlights the point that March (unless we see a bounce) looks like it will be a 3rd consecutive down month. Price is sitting right on the lowest point - 4.8187, Jun 2020 low - of the broad range that has dominated since the peak in May 2020. A clear break of this support (probed today) would reinforce bearish conditions and also highlight a significant reversal.

  • USDCLP remains below the Feb 24 high of 824.50. Trend conditions are bearish and short-term gains are considered corrective. Firm resistance is at 832.75, the Feb 7 high. The bear trigger is 783.51, Feb 23 low. A break would open 783.23, 50.0% of the May - Dec 2021 upleg ahead of the 780.00 handle initially.

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