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Price Signal Summary: USDCLP Trend Needle Still Points Down

LATAM FX
  • USDMXN rebounded last week from a low of 20.1577 (Feb 23). At this stage, short-term gains are considered corrective with trend conditions still highlighting a downtrend. Resistance levels to watch are; 20.7893, Feb 4 high and 20.9141, Jan 28 high. The latter is a key resistance and a break is required to highlight a potential reversal. On the downside, clearance of 20.1577 would confirm a resumption of the downtrend and open 20.1196, Oct 26 low ahead of the 20.00 handle.
  • USDCLP rallied sharply higher Thursday having bounced off last Wednesday’s low of 783.51, the Feb 23 low. Price is pulling back though. Trend conditions remain bearish and short-term gains at this stage are considered corrective. The 50-day EMA at 814.84 has been probed but still offers a firm resistance area ahead of 832.75, the Feb 7 high. The bear trigger is 783.51. A break would open 783.23, the 50.0% retracement of the May - Dec 2021 upleg ahead of the 780.00 handle initially.

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