USD/BRL has failed around the May high at 5.4842. The near-term risk is for a slide back to the June low at 4.8932 while below 5.4733, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.
Slide below the 5.0408 late July low to expose the June low at 4.8932
“USD/BRL formed a top at 5.4733 in late August and nears the three-month uptrend line at 5.1761 and the 55-day ma at 5.1611. This guards the 5.0541/5.0408 mid and late July lows.”
“A slip through the 5.0408 late July low would put the June low at 4.8932 back on the cards. The above levels are in focus while no rise above the recent high at 5.4733 is seen. If so, we would have to allow for the March and April peaks at 5.7560/5.8795 to be reached. On the way there the May high can be spotted at 5.4842.”