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Needle Still Points South


Yields Bounce as Equities Make New Monthly Highs


Heading North


Bull Rally Accelerates


Economists Survey Raises 2021 CPI Forecast To 4.9%

  • USDMXN outlook is bearish and attention is on support at 19.7197, May 18 low. Key resistance has been defined at 20.3270, May 4 high. A bearish theme follows the sell-off since Mar 8 and a price sequence of lower lows and lower highs dominates. An extension lower would strengthen the bearish case and open 19.5494, the Jan 21 low and a primary support.
  • USDBRL maintains a bearish tone and recent gains are considered corrective. The break in mid-April of trendline support drawn off the Dec 14, 2020 low followed by a bearish triangle breakout highlights a bearish theme. 5.2145, 76.4% retracement of the Dec - Mar rally, has recently held but remains exposed. A clear break would open 5.1210, the Jan 4 low.
    • A firm near-term resistance is at 5.4837, May 4 high.
  • USDCLP is sharply higher today as it extends the strong recovery from 690.32, May 10 low.
    • The climb exposed the next area of resistance between 740.22, Mar 29 high and 743.10, Mar 8 high.
    • Clearance of these two levels would open 751.20, Jan 13 high and a key resistance.
    • Support is seen at 719.38, yesterday's low.
MNI London Bureau | +44 203-586-3805 |
MNI London Bureau | +44 203-586-3805 |