Chart USD/BRL Update: Room for lower
Cautious trade has given way to the anticipated break lower
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.9500 | break level | S1 | 5.6355 | * | 7 Nov (m) low | ||
| R3 | 5.8500 | break level | S2 | 5.6125 | ** | 76.4% ret of Sep-Dec rally | ||
| R2 | 5.8000 | ** | congestion | S3 | 5.6000 | * | congestion | |
| R1 | 5.7200 | * | break level | S4 | 5.5500 | * | congestion |
Asterisk denotes strength of level
16:40 GMT - Cautious trade has given way to the anticipated break lower, with prices currently balanced beneath 5.7200. Daily readings have turned down and broader weekly charts remain under pressure, highlighting room for further losses in the coming sessions. A break below the 5.6950 weekly low of 14 February will extend December losses towards the 5.6355 monthly low of 7 November. Juist beneath here is the 5.6125 Fibonacci retracement, but already oversold weekly stochastics could limit any initial tests in short-covering/consolidation. Meanwhile, a close back above 5.7200 will turn sentiment neutral and prompt consolidation beneath congestion around 5.8000.