•USD/MXN setbacks could stall ahead of 2009 lows
•USD/ZAR medium-term studies nearing oversold
•USD/TRY confined to multi-week range trade
•USD/SGD locked in consolidation; no strong bias
USD/MXN
| USD/MXN – Still not ready to mount any significant recovery and trades with a very heavy tone, eyeing a retest of the recent trend and 2009 lows by 12.80 further down. Daily studies confirm and still show plenty of room for weakness. Nevertheless, there is still the possibility that the market is forming a material base and as such, we recommend looking to buy into 13.00 with tight stops below the 2009 lows. Ultimately, a break back above 13.70 will be required to officially take pressure off of the downside. Strategy: BUY DIPS |
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USD/ZAR
| USD/ZAR – The market has pulled back significantly over the past several weeks, and continues to trade with a heavy tone. The recent 2009 lows by 7.87 are in focus, with a break to potentially open a fresh drop towards the 7.60 area. However, with weekly studies now approaching oversold, we contend that there is limited scope for the drop to extend much beyond 7.60 before a major upside reversal. We will be looking to buy by 7.60. BUY DIPS |
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