USD/BRL: Bearish outlook - Commerzbank

According to Karen Jones, analyst at Commerzbank, USD/BRL’s outlook is bearish following its rejection last week from the 55 day ma and the 5 month downtrend 0- these are located at 3.7875/3.8180.

Key Quotes

“Attention reverts to its 3.6373 January low, this guards the October low at 3.5859 and the November 2016 high at 3.5789. While capped by the 200 day moving average at 3.8299 we maintain a bearish outlook.”

“Resistance above the 200 day moving average comes in at the 3.8313/74 mid- to late December lows and key resistance at the 3.9436/54 November and December highs. Between these two areas lies minor resistance at the January high at 3.8973.”