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USDCLP Holds Fibonacci Resistance Exactly, Falls 0.64%

CHILE
  • With negative sentiment precluding across the majority of regional FX peers, the move lower for USDCLP looks purely technical in nature, after well respecting Fibonacci resistance shortly after the open.
  • Sights has been on 948.30, 61.8% of the bear leg between Apr 16 and May 20 and the high price today almost matches the level perfectly. Clearance of this retracement point would be required to further strengthen a bullish condition and open 964.03, the 76.4% retracement point.
  • Note that moving average studies remain in a bear-mode position. This suggests that the recent recovery is potentially a correction. First support to watch lies much lower at 908.75, the Jun 12 low.

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