The USD/BRL pair is nearing good resistance at 5.3746/5.4398. A rise above this area would be medium-term bullish, in the view of Axel Rudolph, Senior FICC Technical Analyst at Commerzbank.
“USD/BRL’s slip to the June low at 4.8932 has been followed by a swift recovery towards the 5.3746/5.4398 resistance area which is made up of the late May high, 200-day moving average and 2021 downtrend line. If overcome, we would turn medium-term bullish again and would target the March and April peaks at 5.7560/5.8795. On the way there the March low and May high can be spotted at 5.4486/5.4842.”
“Slips should find support around the 5.1388 June 11 high and also close to the 5.0183 June 9 low. Further minor support comes in around the current July low at 4.9470. Below the next lower June trough at 4.8932 lies the June 2020 low at 4.8180.”
