FX: Caution Remains As Key Levels Approach

Currencies across Latin American have been hit hard in recent days' trading by the combination of a resurgent dollar and sharp corrections in commodity prices. For the majority of regional majors, however, key support levels have yet to be taken out, and the technical picture indicates that the sell-offs may be a short-term retracement following impressive rallies in April, rather than a fundamental change in trend. Nevertheless, any breach of major support levels could change our fundamental view, and as such we prefer to remain neutral towards regional FX in the near

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