USD/BRL may fall 355 - 533 pips

Our pivot point is at 5.4201.

Our preference

The downside prevails as long as 5.4201 is resistance.

Alternative scenario

The upside breakout of 5.4201, would call for 5.4499 and 5.4677.

Comment

The RSI is below 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 5.4142 and 5.4101). Finally, the USD/BRL has penetrated its lower Bollinger band (5.4046).

Supports and resistances

5.4677 **

5.4499 *

5.4201 **

5.4083

5.3966 last

5.3611

5.3433 **

5.3255 *

5.3078 **

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