USD/BRL may rise 356 - 534 pips

Our pivot point is at 5.3819.

Our preference

Rebound towards 5.4592.

Alternative scenario

Below 5.3819, expect 5.3520 and 5.3342.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is above its signal line and negative. The configuration is mixed. Moreover, the price stands below its 20 and 50 period moving average (respectively at 5.4174 and 5.4341). Finally, the USD/BRL is trading below its lower Bollinger band (standing at 5.4112).

Supports and resistances

5.4948 **

5.4770 *

5.4592 **

5.4414

5.4058 last

5.3937

5.3819 **

5.3520 *

5.3342 **

Number of asterisks represents the strength of support and resistance levels.