USD/BRL may fall 450 - 675 pips

5.6469 is our pivot point.

Our preference

Under pressure below 5.6469.

Alternative scenario

Above 5.6469, look for 5.6847 and 5.7072.

Comment

The RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the price stands below its 20 and 50 period moving average (respectively at 5.6323 and 5.6288). Finally, the USD/BRL has penetrated its lower Bollinger band (5.6206).

Supports and resistances

5.7072 **

5.6847 *

5.6469 **

5.6320

5.6172 last

5.5722

5.5497 **

5.5272 *

5.5048 **

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