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9 Sep 2022
USD/BRL to extend the bounce towards 5.51 and perhaps 5.66/5.72 on a brak past 5.32 – SocGen
USD/BRL recently took support at the previous bullish gap of 5.01 and has staged a steady bounce. First hurdle is located at last month's high of 5.32, a break above here would open up room for further gains, economists at Société Générale report.
Defending 5.01 crucial to avert a deeper pullback
“Daily MACD is attempting an entry within positive territory which would denote regain of upward momentum.”
“If USD/BRL reclaims 5.32, the bounce could extend towards 5.51 and perhaps even towards the multiyear descending trend line near 5.66/5.72.”
“Defending 5.01 would be crucial to avert a deeper pullback.”