USD/COP has defended the lower limit of a multi-month ascending channel near 3720/3700 which is also the 50% retracement from last December and the 200-day moving average. Economists at Société Générale expect the pair to see a larger bounce on a break above 3860.
Dip below 3720/00 to signal a deeper fall
“A rebound looks on the cards towards September high of 3860. If this is overcome, an extended up-move could take shape.”
“Only a break below 3720/3700 will denote possibility of a deeper down move.”