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Price Signal Summary: USDBRL Trades To A Fresh Trend High

LATAM FX
  • USDMXN continues to trade above recent lows and is holding on to this week’s gains. Despite this week’s recovery, the pair still appears vulnerable following the sell-off between Jun 16 - 27 and there remains potential for a deeper retracement near-term. A resumption of weakness would refocus attention on 19.8193, Jun 27 low. This is the trigger for a stronger sell-off. Key resistance is unchanged at 20.7014. A key interim resistance is at 20.3644, 61.8% of the Jun 16 - 27 downleg. A break would strengthen short-term bullish conditions.
  • USDBRL has traded to a fresh trend high today. The pair maintains a bullish tone following recent gains and the pair has managed to hold on to its gains. The focus is on 5.3083 initially, 61.8% of the Dec 21 ‘21 - Apr 5 bear leg. Further out, the 5.4000 handle beckons. On the downside, initial support is seen at 5.1113, the 20-day EMA.
  • USDCLP maintains a bullish tone following last week’s move higher and this week’s follow through. Recent gains 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 together with the subsequent follow through, signals scope for a continuation higher. The focus is on 945.65, the 1.382 projection of the Mar 29 - May 12 - Jun 3 price swing. Initial firm support is at 883.11, the 20-day EMA.

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