Chart USD/BRL Update: Approaching strong resistance
Anticipated tests lower failed to appear, as prices settled into consolidation around congestion support at 5.1000 before turning higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.3000 | ** | congestion | S1 | 5.1500 | * | break level | |
| R3 | 5.2450 | ** | 50% ret of Dec-May fall | S2 | 5.1000 | * | break level | |
| R2 | 5.2200 | ** | 24 Jun (m) high | S3 | 5.0500 | * | break level | |
| R1 | 5.2000 | ** | congestion | S4 | 5.0265 | * | 15 Jun (w) low |
Asterisk denotes strength of level
16:25 BST - Anticipated tests lower failed to appear, as prices settled into consolidation around congestion support at 5.1000 before turning higher. Immediate focus is on resistance at congestion around 5.2000 and the 5.2200 monthly high of 24 June. Rising daily studies and improving weekly charts highlight room for a break towards the 5.2450 Fibonacci retracement. A close above here will improve price action and complete a multi-month congestion pattern above 5.1000, as May gains then focus on congestion around 5.3000.
Meanwhile, support is raised to 5.1500 and extends to 5.1000. This range should underpin any immediate setbacks.