Chart USD/BRL Update: Room for lower
Steady selling interest is approaching congestion support at 5.3500
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.5800 | * | 38.2% ret of Apr-Nov fall | S1 | 5.3500 | * | congestion | |
| R3 | 5.5000 | ** | break level | S2 | 5.2900 | * | 4 Dec (m) low | |
| R2 | 5.4500 | * | break level | S3 | 5.2700 | ** | Sep-Nov (y) lows | |
| R1 | 5.4000 | * | congestion | S4 | 5.2160 | * | June 2024 low |
Asterisk denotes strength of level
17:10 GMT - Steady selling interest is approaching congestion support at 5.3500, where flat oversold daily stochastics are expected to prompt consolidation. The daily Tension Indicator is negative and broader weekly charts are under pressure, however, highlighting room for still further losses in the coming sessions. A break will add weight to sentiment and open up critical support at the 5.2700 year lows from September-November. A close beneath here would add weight to sentiment and confirm continuation of December 2024 losses. Meanwhile, resistance is at congestion around 5.4000 and extends to 5.4500. This broad range is expected to cap any immediate tests higher.