November 09, 2022 14:02 GMT
Price Signal Summary - USDCLP Remains Soft And Is Trading At Its Recent Lows
- The USDMXN outlook remains bearish following recent gains and despite the latest recovery. The pair last week cleared support at 19.7533, the Sep 12 low. The break confirmed the end of a period of consolidation that started mid-August and confirmed a resumption of the downtrend that started Jul 14. Note that moving average studies remain in a bear mode position, highlighting the current sentiment. The focus is on 19.4136, the May 30 low and 19.2802, 1.00 projection of the Jul 14 - Sep 12 - Sep 28 price swing. Key short-term resistance has been defined at 20.1759, the Oct 19 high. Initial resistance is at 19.7894, the 20-day EMA.
- USDBRL traded sharply lower on Oct 31 and the short-term outlook remains bearish. A key short-term support at 5.1121, the Oct 4 low, has been cleared and this strengthens the current bearish threat. Attention is on support at 5.0108, the Aug 29 / 30 lows. Clearance of this level would open 4.8853, the 76.4% retracement of the May 30 - Jul 21 upleg. Initial resistance is at 5.2483, Tuesday’s high.
- USDCLP is trading at its recent lows. The 50-day EMA has recently been breached. The break signals potential for a deeper pullback and this has exposed the 900.00 handle (pierced) and 871.94, the Sep 9 low. Key resistance is at 996.97, the Sep 26 high. Clearance of this level would be bullish and open 1000.00 and 1061.00 further out, the Jul 14 high. Initial resistance is at 958.44, the Nov 3 high.