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Price Signal Summary: USDMXN Maintains This Week's Bearish Theme

LATAM FX
  • USDMXN maintains this week's softer tone and is trading lower again today. The move lower is considered corrective although an extension appears likely short-term. Price is through the 20-day EMA and attention turns to the 50-day EMA at 20.3349. A break of this latter EMA would signal scope for a deeper pullback and expose 20.1196, Oct 26 low. Key resistance is at Wednesday's 20.9790 high.
  • USDBRL remains below its recent high of 5.7542 on Oct 22. The trend outlook remains bullish and directional signals such as moving average studies still point north. Bulls are eyeing 5.7558, the Apr 13 high and 5.8064, the Mar 29 high. Key trend support has been defined at 5.4342, Oct 15 low. Initial support is seen at 5.5369, the Oct 27 low.
  • USDCLP is unchanged and consolidating plus remains below recent highs. The outlook is bullish and scope is seen for a climb towards 834.36, 76.4% of the Mar 2020 - May 2021 downleg. Clearance of this level would open 841.17, May 6 2020 high. The 50-day EMA, as a support, intersects at $799.47.

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