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Chairman Powell


Resumes Its Downtrend


Testing Its 50-Day EMA

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  • USDMXN maintains a firmer tone. This follows the break this week of resistance at 20.9790, Nov 3 high and confirms a resumption of the uptrend, signalling potential for an extension towards the next key resistance at 21.6357, Mar 8 high. Tuesday's low of 20.9940 marks initial support.
  • The USDBRL short-term outlook remains bullish. A firm support has been defined at 5.3885, Nov 11 low and the bull channel base intersects at 5.3973 today. The channel base is drawn from the Jun 25 low. A break of these two levels is required to suggest potential for a stronger move lower. This would expose the 5.20 handle. Resistance at 5.6068, Nov 5 high has been breached recently and this strengthens short-term bullish conditions plus signals scope for a climb towards the channel top at 5.7891.
  • USDCLP is trading higher today. Recent price action has defined key directional triggers at 841.25, the Nov 18 high and 788.22, the Nov 10 low. Clearance of support would set the scene for weakness towards 762.13, Sep 1 low while a breach of resistance at 842.25 would instead open 850.00 and further out 878.86, the Mar 19, 2020 high. From a trend perspective, the outlook remains bullish as long as support holds.