Chart USD/BRL Update: Extending gains
Consolidation following sharp gains has given way to fresh buying interest
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.8000 | * | congestion | S1 | 5.5000 | ** | break level | |
| R3 | 5.7700 | ** | 61.8% ret of 2024-2026 fall | S2 | 5.4000 | * | break level | |
| R2 | 5.7000 | ** | congestion | S3 | 5.3000 | ** | break level | |
| R1 | 5.6500 | ** | break level | S4 | 5.2500 | * | break level |
Asterisk denotes strength of level
16:40 GMT - Consolidation following sharp gains has given way to fresh buying interest, with the break above the 5.6000 Fibonacci retracement helping to improve sentiment and open up a test of resistance at 5.6500. Daily readings are positive and weekly charts are also rising, pointing to room for continuation of May gains towards congestion resistance at 5.7000. Already overbought daily stochastics could limit any initial tests of this range in consolidation, before the 5.7700 retracement attracts.
Meanwhile, support is raised to 5.5000. A close beneath here, if seen, would help to stabilise price action and prompt consolidation above 5.4000.