USD/CLP may fall to 827.88 - 848.29

Our pivot point is at 916.05.

Our preference

The downside prevails as long as 916.05 is resistance.

Alternative scenario

The upside breakout of 916.05, would call for 950.34 and 970.75.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 927.11 and 948.52).

Supports and resistances

970.75 **

950.34 *

916.05 **

902.58

889.11 last

848.29

827.88 **

807.47 *

787.06 **

Number of asterisks represents the strength of support and resistance levels.