USD/BRL may rise 451 - 677 pips

Our pivot point is at 5.6071.

Our preference

Rebound towards 5.7050.

Alternative scenario

The downside breakout of 5.6071 would call for 5.5692 and 5.5466.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is above its signal line and negative. The configuration is mixed. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 5.6534 and 5.6722). Finally, the USD/BRL is trading below its lower Bollinger band (standing at 5.6417).

Supports and resistances

5.7501 **

5.7276 *

5.7050 **

5.6824

5.6373 last

5.6220

5.6071 **

5.5692 *

5.5466 **

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