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TECHS: LatAm FX Price Signal Summary: USDBRL and USDMXN Bounce Off Trendline Support

EMERGING MARKETS
  • 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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