USD/BRL to advance nicely towards the 5.46/5.48 zone – SocGen

The Brazilian real recovered late Friday from a low of 5.3461 to below 5.30. Nonetheless, strategists at Société Générale expect the USD/BRL pair to see a short-term up move.

August low of 5.11 is short-term support

“Local funds have reportedly boosted derivative bets to $5.5 B that the real will weaken because of pessimism over the growth outlook and political tensions between the president and the judiciary.”

“USD/BRL has established itself above the daily Ichimoku cloud which denotes possibility of further upside.

“The pair could inch higher towards projections of 5.46/5.48.”

“August low of 5.11 is short-term support.”