CLP/US$ Looking Precarious

From a technical perspective the near-term trajectory of the Chilean peso is looking shaky. After several days of downward momentum, the currency is now resting on support at the CLP470.00/US$ level, and should we see a clean break through this mark it would not be surprising to see a fall back to the next rung of support at around CLP480.00/US$. Such a move would lead to losses of 2.5% from CLP468.50/US$ at the close of trading on May 5.

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