USD/BRL may fall 309 - 461 pips

Our pivot point is at 5.7048.

Our preference

The downside prevails as long as 5.7048 is resistance.

Alternative scenario

The upside breakout of 5.7048, would call for 5.7304 and 5.7456.

Comment

The RSI is below 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 5.6975 and 5.6955). Finally, the USD/BRL has penetrated its lower Bollinger band (5.6855).

Supports and resistances

5.7456 **

5.7304 *

5.7048 **

5.6948

5.6847 last

5.6538

5.6386 **

5.6234 *

5.6081 **

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