USD/BRL may fall 377 - 564 pips

Our pivot point is at 5.4936.

Our preference

Under pressure below 5.4936.

Alternative scenario

Above 5.4936, look for 5.5249 and 5.5435.

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 5.4832 and 5.4736). Finally, the USD/BRL has penetrated its lower Bollinger band (5.4765).

Supports and resistances

5.5435 **

5.5249 *

5.4936 **

5.4813

5.4690 last

5.4313

5.4126 **

5.3940 *

5.3754 **

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