USD/BRL may rise 333 - 499 pips

Our pivot point stands at 5.5945.

Our preference

As long as 5.5945 is support look for 5.6666.

Alternative scenario

The downside breakout of 5.5945 would call for 5.5665 and 5.5499.

Comment

The RSI is above its neutrality area at 50. The MACD is below its signal line and positive. The pair could retrace. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 5.6114 and 5.6065). Finally, the USD/BRL is trading above its upper Bollinger band (standing at 5.6156).

Supports and resistances

5.6998 **

5.6832 *

5.6666 **

5.6500

5.6167 last

5.6054

5.5945 **

5.5665 *

5.5499 **

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