Chart USD/BRL Update: Cautious trade
Cautious trade, as prices consolidate above congestion support at 5.4000
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.6500 | ** | congestion | S1 | 5.4000~ | * | congestion | |
| R3 | 5.6000 | ** | congestion | S2 | 5.3780 | * | August 2024 low | |
| R2 | 5.5000 | ** | congestion | S3 | 5.3150 | ** | 61.8% ret of 2023-2024 rally | |
| R1 | 5.4500 | congestion | S4 | 5.3000 | * | congestion |
Asterisk denotes strength of level
16:35 BST - Cautious trade, as prices consolidate above congestion support at 5.4000. Daily stochastics and the daily Tension Indicator are mixed/positive, suggesting room for a test higher in the coming sessions. But mixed weekly charts are expected to limit scope in renewed selling interest at congestion resistance around 5.5000. Longer-term charts are bearish, suggesting room for later losses. But a close below the 5.3780 low of August 2024 is needed to turn sentiment negative and extend December 2024 losses towards the 5.3150 Fibonacci retracement. Meanwhile, an unexpected close above 5.5000 will improve sentiment and give way to a run towards congestion around 5.6000.