Chart USD/BRL Update: Sharp gains rejected - prices under pressure
The sharp bounce from strong support at congestion around 5.1000 and the 5.1085 Fibonacci retracement has been rejected at congestion around 5.2000
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 5.3315/35 | ** | 76.4% ret of 2022-2023 fall; 24 Mar 2023 (m) high | S1 | 5.1000/85 | * | congestion; 38.2% ret of Dec-Apr rally | |
R3 | 5.2910 | * | 16 Apr YTD high | S2 | 5.0700 | * | 31 Oct (w) high | |
R2 | 5.2500 | * | congestion | S3 | 5.0520 | ** | 50% ret of Dec-Apr rally | |
R1 | 5.2000 | ** | congestion | S4 | 5.0000 | * | congestion |
Asterisk denotes strength of level
16:35 BST - The sharp bounce from strong support at congestion around 5.1000 and the 5.1085 Fibonacci retracement has been rejected at congestion around 5.2000, with prices once again pressuring 5.1000/85. Daily stochastics are oversold, suggesting immediate tests could give way to consolidation. However, the bearish daily Tension Indicator and unwinding overbought weekly stochastics highlight room for a break and continuation of mid-April losses towards the 5.0520 retracement. Meanwhile, a close above 5.2000, if seen, will turn sentiment neutral and give way to range trade beneath 5.2500.