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Axel Rudolph, analyst at Commerzbank, notes that the USD/BRL has neutralising their short-term forecast as it continues to come off its current May high at 4.1211 and revisits the March and April highs at 4.0133/4.0047.

Key Quotes

“Upside pressure should be maintained while the currency pair stays above the late April and May lows at 3.9258/3.9126. Above the 4.1211 high lie the August and September highs at 4.2098/4.2149.”

“Further up sits the September 2015 peak at 4.2478. Support below 3.9258/3.9126 area can be seen along the 55 day moving average at 3.9207. Below it lie the 200 day moving average, late January high and April low as well as the five month support line at 3.8832/3.8147.”