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Price Signal Summary - USDCLP Holds On To Its Latest Gains

  • USDMXN traded lower last Friday and in the process breached support at 16.6946, the Jul 18 low. This confirms a resumption of the downtrend and maintains the bearish price sequence of lower lows and lower highs. Note that moving average studies are in a bear mode position highlighting a clear downtrend. The break lower opens 16.4472, the 2.0 projection of the Jun 2 - Mar 9 - Mar 20 price swing. Resistance to watch is the 50-day EMA, which intersects at 17.1567.
  • USDBRL remains in a downtrend and last week’s move lower confirmed a resumption of the medium-term bear cycle. Support at 4.7513, the Jun 22 low, has been cleared. This opens 4.6910 next, the May 30 2022 low. Clearance of this level would open 4.6090, the Apr 20 2022 low. Key resistance is at 4.8473, the 50-day EMA. Initial resistance is at 4.7846, the 20-day EMA.
  • USDCLP maintains a short-term bullish tone and the pair is holding on to yesterday’s gains. The gap higher yesterday resulted in a break of 837.15, the Mar 17 high and a key resistance. A continuation higher would reinforce a bullish theme and pave the way for 850.00 and 862.75, the May 1 high. Initial key support has been defined at 803.20, the Jul 20 low. First support to watch is 819.07, the 20-day EMA.

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