Argentinian peso: USD/ARS: A potential double bottom reversal is developing here. Look to buy dollars at current levels with stops below 3.00. A break of 3.0540 would confirm the view and accelerate the trend.
Latin America and Central America
• Argentinian peso: USD/ARS: A potential double bottom reversal is developing here. Look to buy dollars at current levels with stops below 3.00. A break of 3.0540 would confirm the view and accelerate the trend.
• Brazilian real: USD/BRL: The short term bias for a test of 1.70 remains. Whilst a consolidation is possible, the momentum favours real weakness and the continued pressure on soft commodities will add to this. Only a close below 1.65 would suggest a trend change.
• Colombian peso: USD/COP: The 1950 level has been hit. This key resistance has now been breached with targets at 2100. Whilst short term the market is in need of a consolidation, retracements back down towards 1980 should find support. Stops are below 1.940.
• Chilean peso: USD/CLP: A bid tone to copper has helped the peso, but the risk into October is for a move towards the key 535 resistance area with objectives at 550 into year end. Stops are on a two day close below 510.
• Mexican peso: USD/MXN: A major top still threatens in the Bolsa equity index, which is weighing on the peso. Having breached the 10.26 level, the risk here is for a move towards 10.65. Move stops to 10.27.
• Peruvian sol: USD/PEN: The bias for dollar strength remains. Look for a break of 3.00 shortly with targets at 3.10 into year end. Stops are below 2.95.