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Price Signal Summary - USDMXN Gains Considered Corrective

LATAM FX
  • The current bear cycle in USDMXN remains in play and yesterday’s gains are considered corrective. Key short-term resistance has been defined at 17.4280, the Aug 4 high. A clear break of this hurdle is required to highlight a potential short-term reversal and open 17.7714, the May 31 high. The bear trigger is unchanged, it lies at 16.6262, the Jul 28 low. Clearance of this level would confirm a resumption of the medium-term downtrend.
  • A bull cycle USDBRL remains in play and the pullback that started on Aug 18, still appears to be a correction. Support to watch is 4.8416, the Aug 10 low. A break would threaten the bull theme and expose key support at 4.6964, the Jul 28 low. The bull trigger is 5.0016, the Aug 18 high, clearance of this level would open 5.1277, the May 31 high.
  • USDCLP maintains a short-term bullish tone. The contract has recently found support ahead of the 50-day EMA - at 838.49 today. A continuation higher would signal scope for a climb towards the bull trigger at $872.75, the Aug 18 high. On the downside, a clear break of the 50-day EMA would instead suggest scope or a deeper retracement.

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