Chart USD/BRL Update: Consolidating gains - studies improving
Anticipated gains have extended to reach congestion resistance at 5.6000
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.7000 | * | congestion | S1 | 5.5000 | ** | congestion | |
| R3 | 5.6650 | ** | 38.2% ret of Apr-Jul fall | S2 | 5.4700 | * | range lows | |
| R2 | 5.6500 | ** | congestion | S3 | 5.4000~ | ** | 4 Jul YTD low | |
| R1 | 5.6000 | ** | congestion | S4 | 5.3780 | * | August 2024 low |
Asterisk denotes strength of level
16:40 BST - Anticipated gains have extended to reach congestion resistance at 5.6000, before settling lower into choppy trade beneath here. Daily readings continue to rise and weekly charts are showing signs of improvement, highlighting room for further strength in the coming sessions. A later break back above 5.6000 will open up congestion around 5.6500 and the 5.6650 Fibonacci retracement. However, already overbought daily stochastics could limit any initial tests in consolidation, before further gains are seen. Meanwhile, support is at congestion around 5.5000 and extends to the 5.4700 range lows. This range should underpin any immediate setbacks.