USD/BRL has the 5.3479/5.3746 resistance area in its crosshairs – Commerzbank

The USD/BRL pair is heading back up towards the 5.3138 July peak, above which lies resistance at 5.3479/5.3746, as Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, notes.

The Brazilian real remains under pressure

“USD/BRL is seen heading back up towards the 5.3138 July high, a rise above which would engage the 5.3479/5.3746 resistance area which is made up of the late May high, 200-day moving average and 2021 downtrend line. If overcome, we would turn medium-term bullish and target the March and April peaks at 5.7560/5.8795. On the way there the March low and May high can be spotted at 5.4486/5.4842.” 

“We will retain our now short-term bullish forecast while the cross stays above the 5.0541/5.0408 mid and late July lows.”

“Only a currently unexpected slip through the 5.0408 late July low would put the June low at 4.8932 back on the cards. Minor support above this level can be seen near the early June low at 5.0183 and below it at the 2020 low at 4.8180.”