Free Trial

Price Signal Summary: USDCLP Gains Considered Corrective

  • USDMXN is unchanged. Recent gains stalled at 20.9141, the Jan 28 high and the pair remains softer. Attention is on the key short-term support and bear trigger at 20.2787, Jan 18 low. A break of this support would confirm a resumption of the downtrend and open 20.2517, Nov 9 low and 20.1196, Oct 26 low. Key short-term resistance is at 20.9141. A break would instead highlight a short-term reversal.
  • USDBRL is consolidating. The outlook remains bearish though. This week’s sell-off confirmed a clear break of support at 5.3885, the Nov 11 low. The move lower highlights a range breakout and has confirmed a resumption of the bear leg that started Dec 21. This has exposed 5.2230, 61.8% retracement of the rally between Jun - Dec last year. On the upside, resistance is seen at 5.4349, Jan 27 low.
  • The USDCLP trend direction remains bearish and this week’s gains are considered corrective. The downtrend is highlighted by a bearish moving average condition. A break to fresh lows would confirm a resumption of the downtrend and open 788.22, the Nov 10 low ahead of 783.23, the 50.0% retracement of the May - Dec 2021 upleg. Next resistance is seen at 827.27 the Jan 18 high.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.