September 13, 2023 12:51 GMT
Price Signal Summary - USDMXN Support Remains Intact - For Now
- USDMXN conditions remain bullish following last week’s gains and despite this week’s reversal lower - a correction. The pair has traded through an important resistance at 17.4280, the Aug 4 high. Looking at price patterns, the daily close above 17.4280 confirms a double bottom reversal pattern on the daily chart. This signals scope for a climb towards 17.9292 next - 50.0% of the Mar 20 - Jul 28 downleg. On the downside, support to watch lies at the 50-day EMA which intersects at 17.1337.
- A bull cycle in USDBRL remains in play and the support to watch is 4.8416, the Aug 10 low. A break of this level would threaten the current bullish 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 bullish tone following recent gains. A key resistance at 872.75, the Aug 18 high, has been cleared. The break confirms a resumption of the uptrend and opens $912.67, the 61.8% retracement of the Sep ‘22 - Feb ‘23 bear leg. Key support is at the 50-day EMA - at 849.71. The 20-day EMA lies at 868.55.