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Price Signal Summary - USDMXN Bear Flag Reinforces A Bearish Theme

LATAM FX
  • The USDMXN downtrend remains intact and the current consolidation appears to be a bear flag formation. This reinforces bearish conditions and note that moving average studies remain in a bear mode position. Scope is seen for a move towards 16.9791 and 16.7758, the 1.618 and 1.764 projections of the Jun 2 - Mar 9 - Mar 20 price swing. Resistance to watch is the 50-day EMA, which intersects at 17.6046. This is a key short-term hurdle for bulls, where a break would signal a reversal. The 20-day EMA intersects at $17.3124.
  • USDBRL remains in a downtrend and the pair is trading at its recent lows. The move lower on Jun 9 resulted in a break of 4.8859, the May 15 low and this confirmed a range breakout and a resumption of the downtrend. A continuation lower would open 4.7490, the Jun 6 2022 low and 4.6910, the May 30 2022 low. On the upside, initial firm resistance is at 4.9428, the 50-day EMA. The 20-day EMA intersects at 4.8602.

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