Chart USD/BRL Update: Under pressure
Cautious trade above 5.1500 has given way to a sharp fall
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.2450 | ** | 50% ret of Dec-May fall | S1 | 5.1000 | * | break level | |
| R3 | 5.2200 | ** | 24 Jun (m) high | S2 | 5.0500 | * | break level | |
| R2 | 5.2000 | ** | congestion | S3 | 5.0265 | * | 15 Jun (w) low | |
| R1 | 5.1500 | * | break level | S4 | 5.0000 | ** | congestion |
Asterisk denotes strength of level
17:05 BST - Cautious trade above 5.1500 has given way to a sharp fall, with prices testing below support at 5.1000 to reach 5.0700, before bouncing back to 5.1000. Daily stochastics and the daily Tension Indicator have turned down and broader weekly charts are under pressure, highlighting a deterioration in sentiment and room for deeper losses in the coming sessions. A close below 5.1000 will open up support at 5.0500. However, a further close below the 5.0265 weekly low of 15 June will complete a multi-week distribution top beneath the 5.2450 Fibonacci retracement, as mid-August losses then target 5.0000.
Meanwhile, a close back above resistance at 5.1500, if seen, will help to stabilise price action and prompt consolidation beneath congestion around 5.2000.