USD/BRL: Downside pressure likely to be maintained - Commerzbank

Axel Rudolph, analyst at Commerzbank, points out that the USD/BRL continues to come off its May high at 4.1211 and nears the 2019 support line at 3.8983, below which, the 200 day moving average can be found at 3.8657 and the April low at 3.8147.

Key Quotes

“A fall through the latter would make us neutralise our medium-term forecast. The March low can be spotted at 3.7382, the January low at 3.6753 and the January low at 3.6373.”

“Immediate downside pressure is likely to be maintained while the March and April highs at 4.0047/4.0133 cap. Above the next higher 4.1211 May high lie the August and September highs at 4.2098/4.2149. Further up sits the September 2015 peak at 4.2478.”