March 21, 2024 14:23 GMT
Price Signal Summary - USDCLP Trend Outlook Remains Bullish
LATAM FX
- The USDMXN trend condition remains bearish following its recent sell-off and the latest recovery is considered corrective. The break of key support at 16.7852, the Jan 8 low, confirmed a resumption of the downtrend and this has opened 16.6262, the Jul 28 2023 low. A break of this level would open 16.4218, the 1.236 projection of the Dec 5 - Jan 8 - Jan 17 price swing. On the upside, a clear reversal higher would refocus attention on 17.3860, the Jan 17 high and a bull trigger. Initial firm resistance to watch is 16.9891, the 50-day EMA.
- Despite the sharp pullback, USDBRL bullish conditions remain intact. Attention has been on key resistance at 5.0017, the Jan 23 high. This week’s initial gains resulted in a break of this hurdle. A resumption of gains would reinforce the importance of the break and signal scope for a test of 5.0609, 61.8% of the Oct 6 - Dec 27 bear leg. Clearance of this retracement would open 5.0983, the Oct 20 ‘23 high. The 50-day EMA - at 4.9581 - has been pierced. A clear break of this level would threaten bullish conditions and expose 4.9187, the Feb 22 low.
- USDCLP medium-term trend conditions remain bullish and the strong recovery from last week’s low is a positive development. Moving average studies continue to highlight a bullish set-up and note that the latest recovery means support around the 50-day EMA - at 949.08 - has remained intact. Attention is on the resistance and bull trigger at 990.67, the Feb 26 high. A break of this hurdle would confirm a resumption of the uptrend and open 1000.00. On the downside, key support has been defined at 935.63, the Mar 15 low.
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