USD/BRL has retreated after failing to sustain a break above the upper boundary of its multi-month descending channel near 5.61/5.63 and the 200-day moving average around 5.50, Société Générale’s FX analysts note.
Failure above 200-DMA keeps pair under pressure
“USD/BRL has pulled back after testing the upper boundary of a multi-month descending channel near 5.61/5.63. It attempted to break above the 200-DMA (currently near 5.50) but failed to sustain the move.”
“It is gradually drifting toward the September/November lows around 5.27, a key support level. It will be interesting to see if the pair can establish a higher trough and form a base. A cross above the 200-DMA at 5.50 would be crucial to confirm a lager rebound.”
Source: https://www.fxstreet.com/news/usd-brl-pulls-back-after-rejection-at-channel-resistance-societe-generale-202601091047
