USD/BRL to grind higher towards 5.70 on a break above 5.50 – SocGen

USD/BRL is venturing inside the 5.45/50 area for the third time since August. Above here, the pair is expected to test the 5.70 level, economists at Société Générale report.

5.48/5.50 is interim hurdle

“USD/BRL is in proximity to upside projections of 5.48/5.50. Once this hurdle is overcome, a larger up move is likely towards a multi month trend line at 5.70.”

“Daily Ichimoku cloud at 5.30 should provide support.”