My outlook for the USD/BRLCaptain Bolsonaro was elected, my outlook for the dollar, if all goes as expected, riding an economy team with talking heads, and propagating free trade, tax cuts, partnership with the US, privatization, reforms in legislation and social security, things for the year 2019, the dollar according to my studies, will have the following movement:
The dollar is currently priced at R $ 3.69, coming from a high of R $ 4.20. For the first half of November, the dollar could reach R $ 3.50 with a recovery to R $ 3.66, where it could break down to R $ 3.20 at the turn of the year from 2018 to 2019.
With the inauguration of Bolsonaro in January 2019 and then the other parliamentarians in February, the dollar could reach anything between R $ 3,20 and R $ 3,10.
With the beginning of the de facto government and progress of the reform projects, the dollar could reach R $ 2.85 by the end of May 2019.
A "quick" fall, but that can be guaranteed with the improvement in Brazil's risk rating.
This is only for the beginning. Further forecasting is necessary to verify the progress of the approval of the necessary bills to give breath to the creation of jobs, through the so-called "Green and Yellow Wallet" where it would be an employment system in the American way, that is, free of moorings bureaucratic, as well as passing bills to reduce taxes and the long-awaited privatization.
However, I venture to say, in an optimistic perspective, that by the middle of the year 2020, the dollar will be between R $ 2.50 and R $ 2.40; in the middle of the year 2021, something around R $ 2.30 and R $ 2.25; and in the middle of the year 2022, something between $ 2.00 and $ 1.80.
Bolsonaro having succeeded in the government, and consequently re-elected, the dollar could reach R $ 1.30, at the end of the year 2022, making Brazil part of well-developed economically countries like Canada, Australia and England!
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Capitão Bolsonaro foi eleito, minha perspectiva para o dólar, se tudo sair conforme o esperado, montando uma equipe de economia com cabeças pensantes, e propagando o livre comércio, redução de impostos, parceria com os EUA, privatizações, reformas na legislação e previdência, coisas para o ano de 2019, o dólar de acordo com meus estudos, terá o seguinte movimento:
O dólar está no momento cotado a R$ 3,69, vindo de uma alta de R$ 4,20. Para até a metade de novembro o dólar pode chegar a R$ 3,50 com uma recuperação para R$ 3,66, onde poderá partir abaixo para R$ 3,20 na virada de ano de 2018 para 2019.
Com a posse de Bolsonaro em janeiro de 2019 e em seguida dos demais parlamentares em fevereiro, o dólar pode chegar a algo entre R$ 3,20 e R$ 3,10.
Com o início do governo de fato e andamento dos projetos de reformas, o dólar pode chegar a R$ 2,85 até o fim de maio de 2019.
Uma queda "rápida", mas que pode ser garantida com o aumento não só da melhora no "rating", ou classificação de risco do Brasil.
Isso é apenas para o início. Previsão mais à frente é necessário verificar o andamento da aprovação dos projetos de lei necessário para dar fôlego à criação de empregos, por meio da chamada "Carteira Verde e Amarelo" onde seria um sistema empregatício aos moldes do americano, ou seja, livre de amarras burocráticas, além de aprovação de projetos de lei para redução de impostos e as tão esperadas privatizações.
No entanto, me arrisco a dizer, numa perspectiva otimista, que por volta do meio do ano de 2020, o dólar esteja entre R$ 2,50 e R$ 2,40; no meio do ano de 2021, algo em torno de R$ 2,30 e R$ 2,25; e no meio do ano de 2022, algo entre R$ 2,00 e R$ 1,80.
Bolsonaro tendo sucesso no governo e, consequentemente se reelegendo, o dólar poderá ir a R$ 1,30, ao final do ano de 2022, fazendo então o Brasil parte de países bem desenvolvidos economicamente como Canadá, Austrália e Inglaterra!
USDBRL
[USDBRL 6% LONG] Reversal + Price Prediction w/ Spectro™ MThis trading strategy is using Spectro™ M
The blue background means a strong reversal zone. That's our first confirmation.
Now we see the Specter Clouds appearing no only telling us that this is too oversold but also it predicts the organic price, so it predicts possible future prices.
I like simple trading, it's a clear uptrend, Brazil is a damn mess right now, trust me I know, I was raised there before moving to the USA.
Plus it's an ascending triangle and the price is close to a support!
There are no Spectro™ M signals or alerts, but hey life isn't all about automation, right?
Entries anywhere near 3.72 and stop-losses anywhere close to the ascending triangle support line.
Profits go from 0.8% all the way up to 6% based on your strategies risk tolerance and exit rules.
Specter Cloud targets are: 3.752, 3.779 and 3.824
Ascending Triangle Target at ATH: 3.93
ATH close to 3.9666(good omen there)
Liked it? Give it a shot at, it's really affordable - you wouldn't believe if I told you: hypester.org
Brazilian REAL to accelerate devaluation against the USDWe suggest that the Brazilian Real is in a long cup&handle trend formation here showed on the monthly frame.
We expect an acceleration on the REAL devaluation once the 4 reais level is crossed.
Other fundamental aspects in favor of this view are the Brazilian Government several recent failed attempts to revert the current negative patter, the decaying Brazilian economy and the country's political turmoil. We can't see any fundamental that could revert the course of the REAL devaluation, on the opposite the odds are stacking against it.
Technically speaking the only positive aspect of the chart for the REAL is the overbought RSI/Scholastic for the USD. That signals a possible incoming reset of these indicators, and we would expect some sideways action for couple of months until the 4 Reais level is broken.
We favor a long USD for the next 24 months trend.
BRL - To Push Higher
After the rapid ascent we saw a natural pullback with some profit taking and now look poised to resume the upward trajectory for which a possible target could be the 2015 high of 4.24
Price now at key level , seen some intra day forays above 3.75 but failed to close above the reference point
Traders , look for a new high to take further long entries. I see no reason to call a top and will be looking to see how price behaves around the 4.00 round number
Correction to be continued in the Bovespa (Brazil) indexThe Brazil index, Bovespa, often trades in tandem with the Brazilian Real. The index is showing signs of weakness. A good hedge is shorting the Brazilian Real. This is because the Brazilian economy is exchange rate sensitive. See image below to see its consistency.
If the breakdown in the Bovespa breaks the wedge to the downside beyond the minimum target, I believe it is limited to 74,000. Right into the red box. At that point I will be a major buyer
USD/BRL: Buyers ReturnThe negative outlook of early January has faded. The then expected breakout did not materialized. Moreover, buyers have returned and are even trying to trigger a new recovery phase of some sorts. For this they must convincingly clear the barrier around 3.3475 thus paving the way towards 3.4750 and perhaps a bit higher.
Although not spectacular, it is one of various signs that the USD is regaining strength, at least on a 1-3 month horizon. Keep stops nearby at 3.1520.
Primary trend: neutral
Outlook: recovery likely, moderately positive > 3.3475
Strategy: trading-buy above 3.3475
Support: 3.1520 / 3.0810
Resistance: 3.3475 / 3.4750+
Outlook cancelled/neutralized below 3.1520
FX_IDC:USDBRL