Chart USD/BRL Update: Cautious trade - background under pressure
Little change, as flat oversold daily stochastics keep near-term sentiment cautious
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.1500 | * | break level | S1 | 4.9450 | ** | 6 Oct (w) low | |
| R3 | 5.1000 | * | break level | S2 | 4.9000 | congestion | ||
| R2 | 5.0500 | * | break level | S3 | 4.8850 | ** | 6-11 May YTD low | |
| R1 | 5.0000 | * | congestion | S4 | 4.8500 | ** | congestion |
Asterisk denotes strength of level
16:25 BST - Little change, as flat oversold daily stochastics keep near-term sentiment cautious and prompt consolidation beneath congestion resistance at 5.0000. A retest above here cannot be ruled out. But the negative daily Tension Indicator and bearish weekly charts should limit scope in renewed selling interest beneath 5.0500.
Following cautious/corrective trade, fresh losses are looked for. A later break below the 4.8450 weekly low of 6 October will add weight to sentiment and extend August losses towards critical support at the 4.8850 current year low from 6-11 May. A further close beneath here will turn sentiment negative and extend broad December 2024 losses initially towards congestion around 4.8500.