Chart USD/BRL Update: Corrective bounce from fresh year lows
Steady selling interest has extended December 2024 losses to a fresh year low around 5.4000~
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.6000 | ** | congestion | S1 | 5.4000~ | ** | 4 Jul YTD low | |
| R3 | 5.5500 | * | congestion | S2 | 5.3780 | * | August 2024 low | |
| R2 | 5.5000 | ** | congestion | S3 | 5.3150 | ** | 61.8% ret of 2023-2024 rally | |
| R1 | 5.4700 | * | range lows | S4 | 5.3000 | ** | congestion |
Asterisk denotes strength of level
16:55 BST - Steady selling interest has extended December 2024 losses to a fresh year low around 5.4000~, where unwinding oversold daily stochastics are prompting short-covering and a bounce towards resistance at the 5.4700 range lows. The daily Tension Indicator is also edging higher, suggesting room for a break towards further congestion around 5.5000. But mixed/negative weekly charts should limit any continuation beyond here in renewed selling interest towards 5.5500. Following corrective trade, fresh losses are looked for. But a close below 5.4000 is needed to turn sentiment negative and extend losses initially towards the 5.3780 low of August 2024.