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Maintains A Bullish Tone


Tech Bounce Saves NASDAQ Blushes

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  • USDMXN trend direction remains down and recent gains are likely a correction. The move higher has the potential to extend, given that price is still trading closer to recent highs. 20.3805 marks the next resistance, Apr 5 high.
    • 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.
  • USDBRL is firmer again today. Upticks though are still 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 also considered corrective and the short-term 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. A breach would alter the picture.