Chart USD/BRL Update: Balanced beneath strong resistance - studies improving
Anticipated gains have given way to consolidation beneath strong resistance at the 5.2450 Fibonacci retracement
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.3430 | ** | 3 Mar (w) high | S1 | 5.2000 | ** | congestion | |
| R3 | 5.3300 | ** | 61.8% ret of Dec-May fall | S2 | 5.1500 | * | break level | |
| R2 | 5.3000 | ** | congestion | S3 | 5.1000 | * | break level | |
| R1 | 5.2450 | ** | 50% ret of Dec-May fall | S4 | 5.0500 | * | break level |
Asterisk denotes strength of level
16:40 BST - Anticipated gains have given way to consolidation beneath strong resistance at the 5.2450 Fibonacci retracement. However, mixed/positive daily readings are showing signs of improvement and broader weekly charts are rising, suggesting an improvement in sentiment and room for further strength in the coming weeks. A close above 5.2450 complete a multi-month congestion pattern above 5.1000, as May gains then focus on congestion around 5.3000, ahead of the 5.3300 retracement.
Meanwhile, support is raised to congestion around 5.2000. A close beneath here, if seen, will help to stabilise price action and prompt consolidation within congestion above 5.1500.