Chart USD/BRL Update: Consolidating post-election gains - volatility remains heightened
Sharp post-election gains have reached the 5.6000 multi-month Fibonacci retracement
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.6500 | ** | break level | S1 | 5.3000 | ** | break level | |
| R3 | 5.6050 | ** | December 2025 (m) high | S2 | 5.2500 | * | break level | |
| R2 | 5.6000 | ** | 50% ret of 2024-2026 fall | S3 | 5.2000 | ** | break level | |
| R1 | 5.5000 | * | break level | S4 | 5.1500 | * | break level |
Asterisk denotes strength of level
16:45 GMT - Sharp post-election gains have reached the 5.6000 multi-month Fibonacci retracement, where profit-taking has pushed prices sharply lower into choppy trade within 5.3000 - 5.4000. Daily studies are rising and volatility is heightened, suggesting room for further broad swings in the coming sessions. Resistance is up to the 5.5000 break level. However, a close above5.6000 would confirm a sustainable, non-reflexive, rally as gains from the 4.8850 current year low of May then focus on the 5.6500 break level.
Meanwhile, support is ransed to the 5.3000 break level and extends to 5.2500. This range should underpin any immediate setbacks. A close beneath here, however, would turn sentiment neutral and prompt consolidation around 5.2000.