Free Trial

USDBRL Approach Key Short-Term Support

LATAM FX
  • The support for core long-end bonds and the bounce for major indices has provided a strong recovery bid for LatAm currencies, which has seen an impressive bounce for the likes of MXN, BRL and especially CLP which now stands 1.5% off session lows.
    • For USDBRL on the downside, key short-term support is seen at 4.9883, the Sep 29 low. A break of this level would signal scope for a deeper pullback and open 4.9292, trendline support drawn from the Jul 28 low.
    • For USDCLP, initial support is at the 20-day EMA which lies at 922.79. Key support remains much further out at the 50-day EMA - intersectingat 895.07. The most recent pullback is considered corrective.

To read the full story

Close

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.