Dollar/Sol opens up 3.7924 this morning and is now trading at 3.7923. Last week the USD/PEN gained 1.13% on the week opening up at 7.7389, dropping to a low of 3.7387, and running up to an intraday high of 3.7808 and closing the week there.
Commodities, although, cooling off a bit, are still very high and supporting commodity currencies such as the Sol. The buck has been losing ground to the Sol since it hit an all-time high at 4.13. Sep’ 21. And it doesn’t look like its over.
Resistance is at the 3.80 and Support it the 3.70. The pattern from the 3.6993 Feb’ 22 low counts three waves so far. It is still up in the air on whether this is a flat or a triangle forming. Regardless, once the contraction completes we should be getting a fifth wave drop below the 3.70. Outer 1-3 of 2 EW channel should resist.