Dip below the 200- day moving average (DMA) at 5.38) has extended the USD/BRL down move. Economists at Société Générale expect the pair to suffer additional losses on a fall below 5.11/5.09.
200-DMA at 5.38 caps near-term upside
“The pair is now drifting towards potential support of last September trough at 5.11/5.09 which is also the 76.4% retracement from June 2021. If the correction persists below this, USD/BRL could attempt a revisit of the lower band of the range at 4.95 and 4.89.”
“The 200-DMA at 5.38 caps near-term upside.”
