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TECHS: LatAm FX Price Signal Summary: USDMXN Trading At Recent Lows

  • USDMXN is consolidating and maintains a bearish tone following the clear break on Mar 31 of trendline support drawn off the Jan 21 low. This highlights scope for a deeper retracement. The pair has also cleared the Mar 18 low of 20.2829 - a former key support level and this also strengthens a bearish argument, exposing the 20.00 handle. On the upside, resistance is at 20.4974, Apr 1 high.
  • The USDBRL outlook remains bullish.
    • The pair last week traded below trendline support drawn off the Dec 14 low - the trendline intersects at 5.6393 today.
    • A clear break of the line would signal a potentially stronger reversal and expose support at 5.4499.
    • The recovery Friday and this week though is the first sign the trendline break may be a false one.
    • A break of resistance at 5.8064, Mar 29 high would instead confirm a resumption of bullish activity.
    • Key near-term support is at 5.5396, Apr 8 low.
  • USDCLP traded lower Friday breaching support at 713.97, Mar 22 low. The break lower opens 699.19, Feb 24 low. On the upside, a move above 743.10, Mar 8 high is required to highlight a bullish development and expose 751.20, Jan 13 high. Initial resistance is at 721.90, Apr 5 high.

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