USD/BRL falters below 50-DMA, retests 5.27 support – Société Générale
|USD/BRL’s early-October rebound stalled below the 50-day moving average at 5.37/5.40, signaling weak follow-through, Société Générale's FX analysts note.
Failure at 5.37/5.40 keeps USD/BRL bias lower
"USD/BRL experienced a sharp bounce in first half of October however it has failed to maintain above the 50-DMA (5.37/5.40) highlighting a lack of steady upward momentum. The pair is now challenging September trough of 5.27."
"A brief bounce cannot be ruled out however inability to overcome last week high near 5.37/5.40 could lead to persistence in decline. The next objectives are located at projections of 5.20/5.17 and 5.10."
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