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TECHS: LatAm FX Price Signal Summary: CLP Rallies

EMERGING MARKETS
  • USDMXN is still trading near this week's lows and continues to erode support at 19.601, the Jan 6 low.
    • A clear breach of the 50-day EMA is required to signal a reversal - the average intersects at 20.0967 today.
    • On the downside and with support under pressure, the pair is likely to weaken towards 19.5000 and 19.3601. The latter is the 1.618 projection of the Aug - Sep 18 - Sep 24 price swing.
  • USDBRL is trading lower from Tuesday's high of 5.3625. Further weakness would open 5.1923, Jan 14 low and 5.1210, Jan 4 low. A break of 5.3625 is required to trigger stronger gains.
  • USDCLP sold off sharply yesterday and is following through today as the pair pulls away from the 740.00 level and highlights a reversal of the rally between Jan 6 - 13. Attention is on 706.75, Jan 7 low ahead of key support at 693.00, Jan 6 low.

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