While the Peso has strengthened back below its 200 day MA, it remains in a well defined trend channel from the October low and resistance comes in multiple ways down to 12.98.
Similarly, we would look to take profits on the recent run in anticipation of another leg up in the USD.
The Bearish action in the Real is a metaphor for the uninspiring action in the benchmark Bovespa which remains in the red (-.75%) on a YTD basis. The decisive breakout from the well defined range remains operative, and we remain better sellers of the Real.
