Karen Jones, analyst at Commerzbank, suggests that USD/BRL cross has formed a top between the August, September and current October highs at 4.1858/4.1945 and has reached the four month support line at 3.9843.
Key Quotes
“Around it some short-term stabilisation may soon be witnessed. Were two daily chart closes below the support line at 3.9843 to be seen, however, we would expect the next lower mid-June high, August 8 low and the 200 day moving average at 3.9213/3.9183 to be reached as well.”
“Further down sit the July high at 3.8802, the June low at 3.8083 and the July trough at 3.7182. Minor resistance above the early October low at 4.0502 can be seen along the 55 day moving average at 4.1038.”
“Key resistance sits at the 4.1858/4.1945 recent highs and also at the 4.2017 2015-2019 resistance line and the August and September 2018 highs at 4.2098/4.2149.”
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