May 17, 2024 13:02 GMT
Price Signal Summary - USDMXN Bear Cycle Still In Play
LATAM FX
- USDMXN is trading at this week’s lows and remains bearish following the pullback from 17.3885, the Apr 25 high. Price is once again below the 20- and 50-day EMAs. A continuation lower would pave the way for a move towards the 16.50 handle and 16.2616, the Apr 9 low and a key support. For bulls, resistance at 17.3860, the Jan 17 high, has recently been tested. This level is an important reversal trigger and a clear break, if seen, would be bullish and signal scope for a climb towards 17.6365, the 61.8% retracement of the Oct 6 - Apr 9 bear leg.
- The recent move lower in {BZ} USDBRL since Apr 16 appears to have been a correction. However, support around the 50-day EMA, at 5.0845, has also been pierced. A clear breach of this average would strengthen a short-term bearish theme and signal scope for a deeper retracement - this would open 4.9984, the Apr 10 low. Key short-term resistance has been defined at 5.1969, the Apr 30 high. Clearance of this hurdle would be bullish.
- The current bear cycle in {CL} USDCLP remains in play and the pair traded lower yesterday. The recent break of support at 935.63, the Mar 15 low, marked an important technical break and highlighted a stronger reversal. Sights are on 886.96, the 76.4% retracement of the Dec 1 ‘23 - Feb 26 bull leg. Initial key short-term resistance has been defined at 933.66, the 20-day EMA.
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