Here we have an update to the USDCLP daily chart...the selloff since the highs in May 2019 looks impulsive in nature and we are forming a very clear 5 wave sequence to the downside.
This is implying that there is a meaningful top in place, a break below 675 will open the floodgates for 659 where we may see some consolidation (4th wave) before marking the 'C' low.
To put simply, initial targets at 660 and eventually 644. Reassessment will be needed above 690, for now the market is heavily capped below.
Best of luck those in EM FX going into the G20 weekend.
This is implying that there is a meaningful top in place, a break below 675 will open the floodgates for 659 where we may see some consolidation (4th wave) before marking the 'C' low.
To put simply, initial targets at 660 and eventually 644. Reassessment will be needed above 690, for now the market is heavily capped below.
Best of luck those in EM FX going into the G20 weekend.
