COP: Still Looking Good

Following several months of weakness the Colombian peso pulled back in recent trading, breaking through technical resistance at COP1,900/US$ to resume an appreciatory trend. With momentum indicators on the weekly chart implying that the rally has further to run, we highlight multi-year resistance at COP1,800/US$ as our short-term target for the unit. That said, given that the currency has come so far so fast, we would not be surprised to see a fall to resistance-turned-support at COP1,910/US$ before the next major leg up.

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