Some of the recent gains in the Brazilian Real are being recouped. According to Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, the EUR/BRL pair produced an interim bottom around 5.8457 and is seen going back up towards resistance at 6.0875/6.2190.
“The EUR/BRL has fallen close to the July 2020 low of 5.8843, to its June low of 5.8457, to barely above the late April, late May, and late June 2020 lows of 5.8073/5.7882, before rising to the December low of 6.0875. Minor resistance can be found at the 6.1164 low from June 8 and the 6.2190 high from June 11, as well as along the three-month resistance line at 6.2345. Then there’s the 6.2944/6.3023 lows from January and May.”
“Further resistance is found at the May 31 high of 6.4355. Overall downside pressure should keep the upper hand as long as it remains below it.”
“We would only allow the January highs of 6.6778/6.7066 to be attained if the 6.5627 late May high and subsequently the 6.5916/6.6035 resistance area were to be bettered.”
“The 2019-2021 support line can be found at 5.5715 below 5.7882.”/n
