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USD/CLP continues bearish trend and hits four-month lows

  • The Chilean Peso continues to appreciate against the US dollar, reaching levels not seen since January 29.
  • The price of copper continues the upward trend, standing at $4.85, close to the historical maximum of $5.03 per pound.

Chile is the first producer of copper in the world, registering 5 million metric tons in 2023. The price of copper reached a minimum of 3.63 dollars on February 5, and since then, it has not stopped rising, marking a maximum of 4.98 in today's session.

High copper prices drive appreciation of the Chilean peso

The decrease in raw material has influenced the available supply and has been reflected in the constant and accelerated increase in the price of copper this year, this has greatly influenced the appreciation of the Chilean Peso.

Technical levels in the Chilean Peso

We note that it has reached medium-term support at 915.00, in confluence with the 50% Fibonacci retracement. The indicated RSI shows that we have not yet reached the oversold zone, so we expect it to explore the 910-900 zone. The closest resistance in the medium term is at 960.00, today's session high of May 1, in convergence with the 55-period Moving Average and the 23.6% Fibonacci retracement.

Chilean Peso Daily Chart

Technical levels in copper

Based on the RSI indicator, the price of copper is in an overbought zone, the first support is at $4.58, given the retracement to 23.6% Fibonacci. The immediate resistance is located at $5.03, the all-time high reached on March 7, 2022.

Copper Weekly Chart

Source: Fx Street

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