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TECHS: LatAm FX Price Signal Summary: USDBRL and USDMXN Bounce Off Trendline Support
- USDMXN is finding support today. The pair yesterday and earlier today tested trendline support drawn off the Jan 21 low. The line intersects at 20.3614 with today's intraday low at 20.2829. While the support holds, scope is seen for a climb towards resistance at 20.9322, the Mar 12 high. For bears, a break of 20.2829 would resume the downtrend and this would expose 19.8924, Feb 15 low.
- USDBRL is bouncing off trendline support. Today's low marked a test of the 50-day EMA 5.4897 and trendline support drawn off the Dec 14 low. The trendline intersects at 5.5074. The recovery is a positive development and further gains would signal scope for a climb towards 5.6827, Mar 17 high. On the downside, weakness below today's intraday low of 5.4776, would trigger a steeper pullback and open 5.3913, Feb 24 low.
- USDCLP remains below 743.10, Mar 8 high. A deeper pullback would risk a move towards support at 699.19, Feb 24 low. Key resistance and the bull trigger is 743.10. A break would highlight potential for a stronger rally.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.