LATAM FX: LATAM FX Price Signal Summary – USDMXN Bear Cycle Remains In Play

Mar-19 14:09

Last week USDMXN breached a key support at 20.1343, the Jan 24 low. The pair remains soft and price is trading closer to its recent lows. The break of 20.1343 highlights a stronger bear cycle and a potential reversal. A continuation lower would expose 19.7618, the Nov 7 ‘24 low. Clearance of this level would open 19.50. Initial firm pivot resistance is at 20.3473, the 50-day EMA.
A bearish trend cycle in USDBRL remains in play and recent short-term gains have been a correction. The pullback from the Feb 28 high marked the end of the Feb 18 - 28 corrective cycle. Support at 5.6755, the Feb 18 low and a short-term bear trigger, has been pierced. Clearance of this level would expose 5.6340, the Nov 7 low, and the 5.6000 handle. Key short-term resistance has been defined at 5.9179, the Feb 28 high. A break of this hurdle would be a bullish development. Initial resistance is at 5.7731, the 20-day EMA.
USDCLP remains in a bear-mode condition and the latest sell-off reinforces this theme. This week’s move lower has resulted in a break of 921.59, the 76.4% retracement of the upleg between Sep 27 ‘24 - Jan 3. The breach strengthens a bearish theme and paves the way for an extension towards 891.28, the Sep 27 2024 low. Firm resistance is seen at 954.76, the 50-day EMA. The 20-day EMA, an initial resistance, is at 938.89.

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