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Price Signal Summary - USDBRL Trend Needle Points South

  • The USDMXN downtrend remains intact and the current consolidation still appears to be a bear flag formation. If correct, this pattern reinforces bearish conditions and note that moving average studies remain in a bear mode position. Scope is seen for a move towards 16.9791 and 16.7758, the 1.618 and 1.764 projections of the Jun 2 - Mar 9 - Mar 20 price swing. Resistance to watch is the 50-day EMA, which intersects at 17.5155. This is a key short-term hurdle for bulls, where a break would signal a reversal. The 20-day EMA intersects at $17.2340 and represents the first resistance.
  • USDBRL remains in a downtrend and recent gains appear to have been a correction. The move lower on Jun 9 resulted in a break of 4.8859, the May 15 low and this confirmed a range breakout and a resumption of the downtrend. A continuation lower would open 4.7490, the Jun 6 2022 low and 4.6910, the May 30 2022 low. On the upside, initial firm resistance is at 4.9196, the 50-day EMA. A clear break would signal a potential reversal.
  • USDCLP continues to trade inside a range. The pair pierced (in mid-May) support at 783.10, the Mar 31 low. A clear break of this level would expose the key bear trigger at 776.28, the Feb 3 low. Clearance of this support would confirm a resumption of the broader downtrend. For now, the price remains above the May 15 low. A stronger bounce would refocus attention on key short-term resistance at 837.15, the Mar 17 high.

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