Emerging markets – Forex by Lloyds TSB

Argentinian peso: USD/ARS: A symmetrical triangle set-up here points to further short term peso weakness with 3.30 the target into December. 3.18 is a retracement buy zone on stops below 3.16.

Latin America and Central America

• Argentinian peso: USD/ARS: A symmetrical triangle set-up here points to further short term peso weakness with 3.30 the target into December. 3.18 is a retracement buy zone on stops below 3.16.

• Brazilian real: USD/BRL: The real is once again under pressure with the main risk for a break of the high at 2.45 and a surge towards 2.80. Commodity price deflation and investor nervousness continue to weigh on the real, although when the turn comes this will be the preferred currency.

• Colombian peso: USD/COP: Weakness in the peso continues to unfold having breached an interim resistance point at 2334. 2500 is the next main target with a significant resistance point at 2642.

• Chilean peso: USD/CLP: With copper under major pressure an extension of the upward trend here is to be expected in the medium term, despite long term bullish prospects for the peso. There is strong resistance at 687, which is the next main target. Any break of this major level projects a move towards 750. Only a two week
close below 625 would indicate a return to stability for the peso.

• Mexican peso: USD/MXN: Downward pressure on the peso looks set to remain with 15.00 a real possibility in the coming weeks. Whilst we could be approaching the final phase of this move, volatility will need to drop before investor confidence start to return. From a price perspective, a close below 12.50 would indicate a return to
stability, but this is not expected in the short term.

• Peruvian sol: USD/PEN: The next main resistance here is at 3.20 and the market should be drawn towards this level over the coming weeks. 3.06 is a support buy zone, on stops below 3.03.

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