USD/BRL is below strain after failing to interrupt July’s peak, slipping beneath its 50-day shifting common and testing key assist close to 5.39/5.37, with additional draw back threat if the extent offers method, Société Générale’s FX analysts notice.
Brazilian actual features as pair eyes 5.39/5.37 zone
“USD/BRL did not surpass July peak of 5.63 earlier this month and rapidly retreated beneath the 50-DMA, signalling a renewed downward momentum. It’s now testing a key assist zone at 5.39/5.37, which aligns with the September 2024 lows.”
“Whereas a short rebound is feasible, an incapacity to reclaim the shifting common at 5.51 would point out a threat of additional decline. A decisive break beneath the 5.39/5.37 may set off a deeper downtrend, with the subsequent targets at a channel restrict close to 5.29 and projections of 5.20.”
