Paraguay�s Guarani Surge Puts Dollar Under Pressure as Fundamentals Reinforce FX Shift

INSUBCONTINENT EXCLUSIVE:
clear technical evidence from the latest daily trading charts.This rally coincides with reports of unprecedented cross-border shopping
tourism and the launch of major regional technology investments, both developments cited on July 22, 2025.Late selling of the dollar began
on July 21, after traders observed the USD/PYG pair breaking key support around 7,700, which set off a chain reaction of stop losses.Volumes
reached higher-than-average levels as major players moved dollars into the local currency
The dollar closed early morning trading at 7,477 against the Guarani, having shed value consistently through the night.Technical analysis
using the most common indicators shows this move was not random
The daily chart provides hard evidence: the price now trades below its 50, 100, and 200-day moving averages, confirming a strong downward
(Photo Internet reproduction)The Relative Strength Index has reached readings below 15, signaling the market considers the pair extremely
oversold
The MACD histogram and signal lines sit deep in negative territory, prolonging the bearish momentum seen over the last several
sessions.Bollinger Bands, calculated on a standard 20-day period, have widened sharply, indicating heightened volatility and confirming this
selloff goes beyond normal ranges
Current price action bumps against the lower band, providing no sign of reversal.Guarani Strengthens on Solid FundamentalsSupport levels
have adjusted lower, with new near-term floor at 7,500
Resistance stands above 7,900
The lack of volume spikes at reversal points suggests the selloff retains momentum rather than approaching exhaustion.Macro fundamentals
Paraguay expects GDP to expand roughly 3.8% in 2025 and keeps inflation at 3%.A strong external position, seen in foreign exchange reserves
above $10 billion and robust demand in the energy and agricultural export sectors, attracts regional and international capital.A wave of
consumer spending by Brazilian and Argentine shoppers, alongside notable foreign direct investment from Asia in the new tech park, has
contributed to increased demand for Guarani.Merchants and companies exchanged export proceeds into local currency quickly, reinforcing the
supply-demand imbalance against the dollar.Local financial institutions report steady inflows into retail money market and savings products
denominated in Guarani, but avoid speculative or volatile activity
macroeconomic strength and technical breakdowns
No central bank or official statement contradicts these conclusions as of this morning.Market participants track the situation closely,
knowing such strong trends often invite caution, but so far, the fundamentals and price actions align, offering no evidence for reversal.