USD/BRL may rise 440 - 660 pips

5.4667 is our pivot point.

Our preference

Rebound towards 5.5622.

Alternative scenario

Below 5.4667, expect 5.4297 and 5.4077.

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 negative and above its signal line. The configuration is mixed. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 5.5063 and 5.5214). Finally, the USD/BRL has penetrated its lower Bollinger band (5.5015).

Supports and resistances

5.6062 **

5.5842 *

5.5622 **

5.5402

5.4962 last

5.4812

5.4667 **

5.4297 *

5.4077 **

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