Quotes from Societe Generale Cross Asset Research:
-USD/CLP has retraced from our earlier highlighted resistance of 635 which happens to be the median of an upward channel drawn since 2013.
-Weekly RSI diverged negatively and has pulled back from a resistance suggesting 635 as an important level. If we drop down to daily chart, the pair has formed a bearish engulfing and has given a dual break below a pattern similar to a rising wedge and a head and shoulder.
-With daily RSI breaking below support, the pair looks poised to drift lower initially tow ards 614, a break below which will mean a deeper retracement towards December lows of 604, also the multiyear channel limit and the pattern target.
