USD/BRL retreats below 50-DMA, tests key support – Société Générale
|USD/BRL is under pressure after failing to break July’s peak, slipping below its 50-day moving average and testing key support near 5.39/5.37, with further downside risk if the level gives way, Société Générale's FX analysts note.
Brazilian real gains as pair eyes 5.39/5.37 zone
"USD/BRL failed to surpass July peak of 5.63 earlier this month and quickly retreated below the 50-DMA, signalling a renewed downward momentum. It is now testing a key support zone at 5.39/5.37, which aligns with the September 2024 lows."
"While a brief rebound is possible, an inability to reclaim the moving average at 5.51 would indicate a risk of further decline. A decisive break below the 5.39/5.37 could trigger a deeper downtrend, with the next targets at a channel limit near 5.29 and projections of 5.20."
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