Chart USD/BRL Update: Limited tests lower
Consolidation following the test above congestion resistance at 5.3000 is giving way to a pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.4000 | * | congestion | S1 | 5.2000 | * | congestion | |
| R3 | 5.3500 | * | congestion | S2 | 5.1500 | ** | congestion | |
| R2 | 5.3000 | ** | congestion | S3 | 5.1170 | ** | 25 Feb YTD low | |
| R1 | 5.2500 | * | congestion | S4 | 5.1000 | ** | congestion |
Asterisk denotes strength of level
17:00 GMT - Consolidation following the test above congestion resistance at 5.3000 is giving way to a pullback, as overbought daily stochastics unwind, with immediate focus on congestion support at 5.2000. A break will open up further congestion around 5.1500. But the positive daily Tension Indicator and improving weekly charts should limit any deeper losses in renewed buying interest above critical support at the 5.1170 current year low of 25 February. A close beneath here, however, will turn sentiment negative and extend December 2024 losses initially to 5.1000. Following cautious trade, fresh gains are looked for. Resistance is at congestion around 5.2500. But a close above 5.3000 is needed to turn sentiment positive and extend late-February gains initially to 5.4000.