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US Data Placing Moderate Downward Pressure On Greenback

EM FX
  • A few weaker-than-expected US data points are placing some pressure on the greenback and although EMFX remains fairly stable, USDMXN continues to hover right above trend lows at 18.2994.
  • The most recent sideways price action appears to be a bear flag formation. If correct, this reinforces the current downtrend that is in place. Note that moving average studies are in a bear mode set-up, highlighting current sentiment.
  • A break lower would open the 18.00 handle. The 20-day EMA, at 18.5823, is the first resistance.

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