Chart USD/BRL Update: Balanced at local highs
The anticipated test of strong resistance within the 5.2000 - 5.2450 range is giving way to a pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.3000 | ** | congestion | S1 | 5.1500 | * | break level | |
| R3 | 5.2450 | ** | 50% ret of Dec-May fall | S2 | 5.1000 | * | break level | |
| R2 | 5.2200 | ** | 24 Jun (m) high | S3 | 5.0500 | * | break level | |
| R1 | 5.2000 | ** | congestion | S4 | 5.0265 | * | 15 Jun (w) low |
Asterisk denotes strength of level
16:50 BST - The anticipated test of strong resistance within the 5.2000 - 5.2450 range is giving way to a pullback, with prices currently balanced around 5.1850. Overbought daily stochastics are unwinding and the positive daily Tension Indicator is flattening, suggesting potential for a pullback in the coming sessions. A break below support at 5.1500 will add weight to sentiment and open up a test of 5.1000. However, improving weekly charts should prompt renewed buying interest towards here.
Meanwhile, resistance is strong up to the 5.2450 Fibonacci retracement. A close above here would turn sentiment positive and extend May gains initially towards congestion around 5.3000.