USD/BRL: Next potential objectives located at May high of 5.11/5.13 and 5.21 – SocGen

USD/BRL has crossed back above 5.00. Economists at Société Générale analyze the pair’s outlook.

Defence of 4.84 crucial for persistence in up move

USD/BRL has extended its rebound after carving out a higher low at 4.84 as compared to the one in July near 4.69. It has crossed above the descending channel that encompassed the decline since January and is attempting a break above the 200-DMA.

Next potential objectives are located at May high of 5.11/5.13 and 5.21.

Defence of recent pivot low near 4.84 would be crucial for persistence in up move.