USD/BRL: Decline to extend on failure to defend 4.84 – SocGen

FXStreet Insights Team FXStreet

The Brazilian Real was up a smidgen last week. Economists at analyze USD/BRL outlook.

Reclaiming 200-DMA near 4.98 essential to affirm a meaningful up move

USD/BRL has experienced a steady down move after its rebound faltered near 5.21, the 61.8% retracement from November 2022. It is now close to the low of September near 4.84 which is interim support. The decline has stalled however reclaiming the 200-DMA near 4.98 would be essential to affirm a meaningful up move.

In case the pair fails to defend 4.84, the phase of decline could extend towards projections of 4.78 and perhaps even towards 4.69.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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