Published: 2025-05-07T15:44:50.000Z
Chart USD/BRL Update: Limited corrective gains
Senior Technical Strategist
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Cautious trade is giving way to fresh gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 6.0955 | ** | 9 Apr (w) high | S1 | 5.7200 | * | break level | |
| R3 | 6.0000 | ** | break level | S2 | 5.6125 | ** | 76.4% ret of Sep-Dec rally | |
| R2 | 5.9000 | ** | congestion | S3 | 5.6000 | ** | congestion | |
| R1 | 5.8000 | ** | congestion | S4 | 5.5050 | ** | 50% ret of 2023-2024 rally |
Asterisk denotes strength of level
16:30 BST - Cautious trade is giving way to fresh gains, with the break above 5.7200 improving sentiment. Rising daily readings and a tick higher in oversold weekly stochastics are putting focus on congestion resistance at 5.8000. However, the negative weekly Tension Indicator and bearish longer-term charts are expected to limit any initial tests in renewed selling interest. A break, however, will further improve sentiment and extend corrective gains towards 5.9000. Meanwhile, any immediate tests below 5.7200 are expected to give way to consolidation above congestion support at 5.6000 and the 5.6125 Fibonacci retracement.