USD/BRL may fall 335 - 502 pips

Our pivot point is at 5.5929.

Our preference

Target 5.5206.

Alternative scenario

Above 5.5929, look for 5.6210 and 5.6377.

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 is below its 20 period moving average (5.5895) but above its 50 period moving average (5.5543). Finally, the USD/BRL is trading below its lower Bollinger band (standing at 5.5797).

Supports and resistances

5.6377 **

5.6210 *

5.5929 **

5.5818

5.5708 last

5.5373

5.5206 **

5.5039 *

5.4871 **

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