June 16, 2022 12:48 GMT
- USDMXN maintains a bullish tone following this week’s gains. The rally has resulted in a print above 20.6378, the Apr 28 high. It marks an important resistance and a clear break would suggest potential for an extension higher. This would open 20.6830 (tested) and 20.9829, the 61.8% and 76.4% retracements of the Mar - May bear leg. Key support has been defined at 19.4136, May 30 low. Initial support is at 19.9430, the 20-day EMA.
- USDCLP traded sharply higher on Jun 10 to confirm a reversal of the bear cycle between May 12 - Jun 3. The USD has also traded higher this week and is holding on to the bulk of recent gains. The rally has delivered a print above key near-term resistance at 871.60, the May 12 high. Clearance of this resistance would expose the major hurdle for bulls at 878.86, the Mar 19 2020 high. Key short-term support has been defined at 807.85. Initial support is at 846.43, the Jun 10 high and gap low on the daily chart.