USDBRL: Upside bubble is emerging - Natixis

An upside bubble is emerging on the daily chart of USDBRL cross and on the weekly chart upside parallels are emerging, according to Micaella Feldstein, Research Analyst at Natixis.

Key quotes

“Against this backdrop, dips towards a support at 3.2930 (daily Bollinger moving average) and even to the support at 3.2614 (9week moving average) will be seen as corrective. The cross is indeed poised for a stronger rally in the next few weeks: a break above the 3.35403.3630 area (daily Bollinger upper band) would underpin bullish impetus, paving the way to 3.4210 (monthly Bollinger moving average), to 3.45 (Fibonacci extension) and to 3.4680 (declining trendline). The supports are at 3.2930, at 3.2560-3.2614, at 3.2090 and at 3.1860.”