The USD/BRL closed near the 5.3218 ratio yesterday, this after touching highs earlier in the day around the 5.3475. Last Tuesday and Wednesday the USD/BRL challenged the 5.2635 vicinity.
The USD/BRL has correlated to the broad Forex market rather well the past handful of days, yesterday’s trading ended near the 5.3218 ratio, this after touching a high around 5.3475 early in the day. The USD/BRL has been maintaining the lower thresholds of its long-term realm rather well, but has risen since touching lows around the 5.2635 vicinity last week.
Risk sentiment in the broad financial markets appears to be rather cautious and is likely to stay that way throughout the near-term.
Large Players and Outlook for the USD/BRL
The USD/BRL it should be noted, remains within sight of important support levels which may continue to create different perspectives based on speculative timeframes. The short and near-term continue to look like choppy trading will be seen, but some larger players may still believe the USD will show some additional weakness in Forex over the mid-term. The potential that a bearish mid-term perspective will continue to create some downward pressure for the USD/BRL is reasonable.
The ability of the USD/BRL to break below the 5.3000 mark last Monday and maintain a fight that sustained lower values for a handful of days until late this Monday is notable. Risk adverse sentiment in the broad markets appears to be growing and this may continue to create swirling conditions which see the USD/BRL test slightly higher values in today and tomorrow.
5.3000 Realm as a Looking Glass for Day Traders
After a slight surge higher in early trading yesterday the USD/BRL did see some selling. However, the USD/BRL remains above the prior week’s highs which indicated nervous sentiment is being felt in financial institutions.
— Having achieved a solid bearish trend rather consistently since the 4th of November, the 5.3000 level in the short-term may be considered oversold territory.
— If today’s trading or tomorrow’s starts to flirt with highs around 5.3400 again, the USD/BRL could test higher ratios.
— The currency pair should be treated carefully by day traders in the near-term because sentiment shifts may occur rapidly over the coming hours and into tomorrow.
— The
— Traders who believe the USD/BRL may tick upwards today may be proven correct, but risk management is needed.
[graph_7361]
Brazilian Real Short Term Outlook:
Current Resistance: 5.3340
Current Support: 5.3180
High Target: 5.3520
Low Target: 5.3010
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