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Needle Still Points South


Yields Bounce as Equities Make New Monthly Highs


Heading North


Bull Rally Accelerates


Economists Survey Raises 2021 CPI Forecast To 4.9%

  • USDMXN is trading lower as the pair approaches the lower end of the past month's high - low range. From a trend perspective, the outlook is bearish and attention is on the support at 19.7197, May 18 low and the bear trigger. A break would strengthen a bearish case and open 19.5494, Jan 21 low and a primary support. Key resistance has been defined at 20.3270, May 4 high.
  • USDBRL traded lower again Friday and remains soft. Last week's break of support at 5.1979, May 10 low confirms a resumption of the downtrend and paves the way for weakness towards 5.0107 next, Dec 14 low. This level is now within reach. A firm near-term resistance is at 5.3740, high May 24. Initial resistance is $5.1979. Note too that USDBRL last week cleared the base of a broad channel drawn off the Jun 8 low. This reinforces current conditions.
  • USDCLP outlook remains bullish despite the recent extension lower. A bullish theme follows sharp gains that resulted from the reversal off 690.32, May 10 low. The climb has exposed the next area of resistance between 740.22, Mar 29 high and 743.10, Mar 8 high. Clearance of these two levels would open 751.20, Jan 13 high and a key resistance. Support is seen at 710.46, May 18 low.
MNI London Bureau | +44 203-586-3805 |
MNI London Bureau | +44 203-586-3805 |