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USDCLP Extends Slide Below Key Short-Term Support

CHILE
  • USDCLP has fallen a further half a percent on Wednesday. The trend outlook for the pair remains bearish having recently cleared key short-term support at 873.00, the Nov 3 low, has been cleared. The break of this level has strengthened a bearish threat and signals scope for a deeper retracement towards 837.45, the Aug 25 low. Initial resistance moves down to $890.61, the 50-day EMA.
  • The renewed peso optimism comes amid the more positive backdrop of well supported copper prices, lower US yields and higher major equity indices. Economic activity data this week and CPI on December 07 will shape the expectations for the final monetary policy decision of the year on Dec 19. The plebiscite on the new constitution, scheduled for Dec 17 remains a key domestic risk.

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