USD/BRL may fall 362 - 541 pips

5.4502 is our pivot point.

Our preference

Under pressure below 5.4502.

Alternative scenario

Above 5.4502, look for 5.4802 and 5.4981.

Comment

The RSI is below 50. The MACD is below its signal line and positive. The MACD must penetrate its zero line to expect further downside. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 5.4384 and 5.4266). Finally, the USD/BRL has penetrated its lower Bollinger band (5.4324).

Supports and resistances

5.4981 **

5.4802 *

5.4502 **

5.4384

5.4266 last

5.3904

5.3725 **

5.3546 *

5.3368 **

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