EUR/BRL to extend the slide from the 7.0013 level – Commerzbank


The EUR/BRL pair has charted a key week reversal from 7.0013 which implies that 7.0013 is an interim high. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, looks for further weakness.

Key quotes

“EUR/BRL has charted a key week reversal from the 7.0013 level. Failure here has been emphatic and coupled with a 13 count and divergence of the RSI we view this as an interim turning point for the market and would allow for further losses.” 

“It has sold off sharply to the three-month uptrend and 55-day ma at 6.5730 and this is now exposed. Failure here will target the 2020-2021 support line at 6.5246 and then 200-day ma at 6.3789 and then the December low at 6.0876.” 

“Previous October highs at 6.7866 are likely to offer initial resistance now ahead of the 7.0013 high.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Bullish hourly divergence, 38.2% ratio eyed

EUR/USD has stalled and is steady in the open. The bears have been in control to this point after breaking back below the 200-hour EMA.

EUR/USD News

GBP/USD: A critical watch on BoE and Fed week

It is a critical week for GBP/USD traders as we have both the BOE and the Fed meetings. GBP/USD is moving sideways in a consolidated market, hugging a bullish 200 EMA channel, albeit pressured by a firm US dollar as investors survey the conditions of the market's risk profile. 

GBP/USD News

Gold: Steady as she goes on Fed week

Gold is flat during holiday thin markets with both Tokyo and China out today. Gold vs the US dollar has traded in a narrow range between $1,751.27 low and a $1,755.29 high.  

Gold News

Bitcoin might be safe from a global stock market crisis

BTC’s lack of integration with traditional finance and its inability to be forcefully sold to cover financial losses mean the price might not ‘collapse’ if there is a global stock market meltdown.

Read more

Evergrande: Risk-off tone for APAC, a USD win-win scenario, bad for AUD

The open could be in for a risk-off ride to start the week due to China's embattled developer, Evergrande, being on the brink of default. The potential fallout of Evergrande could have contagion implications that spill outside China’s financial market borders.

Read more

Forex MAJORS

Cryptocurrencies

Signatures