CRC: Gathering Global Headwinds Weigh On Colón

The Costa Rican colón hit its lowest level in over a year on October 5th, weakening 4.15% since its April 2011 low, and the unit does not appear to have hit its bottom yet. Having broken an area of support around CRC519.00/US$, it could still trend lower to test support around CRC526.00/US$. Though daily momentum indicators appear to be moving out of oversold territory, the monthly and weekly indicators remain more bearish.

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