Chart USD/BRL Update: Limited tests higher
Consolidation following the test of the 5.3780 low of August 2024 has given way to a bounce back above 5.4000
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.6500 | ** | congestion | S1 | 5.4000~ | * | congestion | |
| R3 | 5.6000 | ** | congestion | S2 | 5.3780 | * | August 2024 low | |
| R2 | 5.5000 | ** | congestion | S3 | 5.3150 | ** | 61.8% ret of 2023-2024 rally | |
| R1 | 5.4500 | congestion | S4 | 5.3000 | * | congestion |
Asterisk denotes strength of level
16:45 BST - Consolidation following the test of the 5.3780 low of August 2024 has given way to a bounce back above 5.4000, as oversold daily stochastics unwind, with prices currently trading around 5.4215. A test of congestion resistance at 5.4500 cannot be ruled out. But the bearish daily Tension Indicator and negative weekly charts are expected to limit any break in renewed selling interest towards further congestion around 5.5000. Following cautious trade, fresh losses are looked for. A close below 5.3780 will turn sentiment negative and extend December 2024 losses towards the 5.3150 Fibonacci retracement.