USD/BRL has the May high at 5.3746 in its crosshairs – Commerzbank

The USD/BRL pair is heading back up towards the 5.3138 July peak and 200-day moving average at 5.3256. A break above here should be enough to trigger another leg higher, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.

Bullish outlook while above the 5.0541/5.0408 region

“USD/BRL is seen heading back up towards the 5.3138 July high, and the 200-day ma at 5.3256. Above here will target initially the May high at 5.3746. If overcome, we would turn medium-term bullish and target the March and April peaks at 5.7560/5.8795. On the way there the March low and May high can be spotted at 5.4486/5.4842.” 

“We will retain our now short-term bullish forecast while the cross stays above the 5.0541/5.0408 mid and late July lows.”

“Only a currently unexpected slip through the 5.0408 late July low would put the June low at 4.8932 back on the cards. Minor support above this level can be seen near the early June low at 5.0183 and below it at the 2020 low at 4.8180.”