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Tech Focus: LatAm FX Price Signal Summary: USD Gains Considered Corrective

EMERGING MARKETS
  • USDMXN trend direction remains down and recent gains are likely a correction. A recent break of trendline support drawn off the Jan 21 low and a move through the Mar 18 low of 20.2829, a former key support, highlights a bearish theme. Furthermore, support at 19.8924, Feb 15 low was breached on Apr 15. The focus is on 19.5494, Jan 21 low. On the upside, resistance is at 20.3805, Apr 5 high.
  • USDBRL maintains a bearish tone and upticks are considered corrective. A recent break of trendline support drawn off the Dec 14, 2020 low and a bearish triangle breakout on Apr 19 highlights the current bearish theme. The pair has probed 5.3406, 61.8% of the Dec - Mar rally. A clear break would open 5.2145, the 76.4% level. A firm near-term resistance is at 5.5229, Apr 23 high.
  • USDCLP gains are considered corrective and the outlook remains bearish. Price has recently traded below 699.19, Feb 24 low. This signals scope for weakness towards the primary support at 693.00, Jan 6 low. A break would confirm a resumption of the broader downtrend that started March 2020 and would open 686.05, 1.618 projection of the Oct 15 - Nov 9 - Nov 24 price swing. 715.36, Apr 23 high is key resistance.

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