Chart USD/BRL Update: Consolidating
Cautious trade, as prices consolidate above critical support at the 5.2700 current year low of 18 September
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.5000 | ** | congestion | S1 | 5.3000 | * | congestion | |
| R3 | 5.4500 | congestion | S2 | 5.2700 | ** | 18 Sep YTD low | ||
| R2 | 5.4000 | ** | congestion | S3 | 5.2160 | June 2024 low | ||
| R1 | 5.3725 | * | 2 Oct (w) high | S4 | 5.2000 | * | congestion |
Asterisk denotes strength of level
17:35 BST - Cautious trade, as prices consolidate above critical support at the 5.2700 current year low of 18 September. Daily studies are mixed/positive and oversold weekly stochastics are unwinding, suggesting room for a test higher. A break above the 5.3725 weekly high of 2 October will improve sentiment and open up congestion around 5.4000. But negative longer-term readings should limit any continuation beyond here in renewed selling interest towards 5.4500. Meanwhile, immediate support is at congestion around 5.3000 and extends to 5.2700. A close beneath here would turn sentiment negative and extend December 2024 losses towards 5.2000.