Chart USD/BRL Update: Further gains to remain limited
The anticipated break below critical support at the 5.2700 monthly low of 18 September has not been seen
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 5.5000 | ** | break level | S1 | 5.3000 | * | congestion | |
| R3 | 5.4500 | * | break level | S2 | 5.2700 | ** | 18 Sep (m) low | |
| R2 | 5.4000 | * | congestion | S3 | 5.2160 | June 2024 low | ||
| R1 | 5.3500 | * | congestion | S4 | 5.2000 | ** | congestion |
Asterisk denotes strength of level
17:05 GMT - The anticipated break below critical support at the 5.2700 monthly low of 18 September has not been seen, as unwinding oversold daily stochastics prompt a bounce into consolidation beneath congestion resistance at 5.3500. The daily Tension Indicator is also rising, suggesting potential for a test above here. But negative weekly charts should limit scope in renewed selling interest beneath further congestion around 5.4000. Following cautious, lower levels are looked for. But a close below 5.2700 is needed to turn sentiment negative and confirm continuation of December 2024 losses, initially to the 5.2160 low of June 2024.