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Tech Focus: LatAm FX Price Signal Summary: CLP Cements Downtrend

MARKET INSIGHT
  • USDMXN is trading close to last week's lows. Activity since Jun 25 still appears corrective in nature and this is in line with a bearish theme that still dominates. Attention is on 19.7059, Jun 25 low and 19.5987, the Jun 9 low. The next firm resistance is at 20.3504, 61.8% of the recent Jun 18 - 25 downleg
  • USDBRL has probed support at 5.0550, Jul 15 low. A clear break would signal scope for a deeper short-term pullback and expose 5.00 plus the Jun 25 low of 4.8934. The latter is a key support. For bulls, the trigger for a resumption of gains is 5.3130, the Jul 8 high.
  • USDCLP is breaking to new highs Tuesday, topping the late July high at 772.76. This further cements the bullish outlook and the underlying uptrend. The focus is on 777.00, the Nov 24, 2020 high. Support is at 747.63, Jul 22 low.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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