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Price Signal Summary - USDMXN Sell-Off Exposes The Bear Trigger

LATAM FX
  • USDMXN is trading lower today as the pair extends this week’s sell-off. The 17.00 handle has been cleared and the continuation lower signals scope for a move towards the key support at 16.7852, the Jan 8 low. A break of this level would resume the downtrend and open 16.6262, the Jul 28 2023 low. On the upside, a reversal higher would refocus attention on 17.3860, the Jan 17 high and a bull trigger. Initial resistance is at 17.0250, the 20-day EMA.
  • USDBRL conditions remain bullish and attention is on key resistance at 5.0017, the Jan 23 high. It has recently been pierced. A clear break of this hurdle would open 5.0609, 61.8% of the Oct 6 - Dec 27 bear leg. Initial key support to watch lies at 4.9025, the Jan 26 low. A break would be bearish.
  • USDCLP trend conditions remain bullish and the recent fresh cycle highs reinforce current conditions and confirm a resumption of the medium-term uptrend. The latest pullback appears - for now - to be a correction. Support at the 20-day EMA has been cleared. The next support to watch lies at 960.88, the Mar 1 low, ahead of the 50-day EMA, at 946.29. For bulls, sights are 996.97, the Sep 2022 high and the psychological 1000.00 handle.

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