USDBRL trade ideas
saturation and correctionstarting a correction to the 3.4 zone
hard bounce in the fibo 0.764 recuperation
be into the channel and take a brake for the RSI saturation zone going back to 3.4
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.
Canada is similar to BrazilCanada is basically an EM like Brazil, except without the trade from the USA.
resistence Testing for USD x BRIf the price of the paper money USDBRL pass through of the resistance line It'll goes to 4.10
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
USDBRL Short in 3 months to 2022As I can see from the history chart 200 til now USD/BRL will soon around month 8 go down for about 4 years .
The Central Bank will intervene in the USD/BRL.The Central Bank will offer more foreign exchange swap contracts, equivalent to the sale of dollars in the futures contracts.
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
BRAZIL WITHOUT LULAA NEW AGE WILL COME TO THE SOUTH AMERICA GIANT???
USD/BRL LOW LOW LOW- BUY REAL TOMORROW MORNING
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
USDBRL shown exhaustion candle, maybe short?A Doji appeared at 4 hour chart, buyers exaustion, time to sellers take place maybe, let's see what happens.
USD/BRL bulls satisfied @38.2% Fibos, bears hover with whipsawsOn daily charts, we see stiff resistance at around 3.3346-3.3420 levels where the pair has shown a convincing supply zone in the recent history.
That is where a resembling evening star pattern has occurred that is pulling back from highs of 3.34 levels.
Hanging man patterns at 3.3149 and 3.3121 levels are occurred to plummet the prices below 7DMAs. Thereafter, you could see a steep slump upto the current levels of 3.2369.
However on a broader perspective, in the recent times, it has managed to test the strong supports at 3.2019 (i.e. 38.2% Fibonacci levels on monthly plotting) to bounce back again but upswings are restrained at the same resistance levels.
Most noticeably, the current price behavior in the major trend goes in whipsaws pattern on 21&7-EMAs & 38.2% Fibonacci retracement levels, the current prices are well below EMAs in this time frame.
Both leading oscillators (RSI and stochastic curves) have shown indecisiveness on this timeframe but indicate strength and intensified momentum in ongoing selling sentiments on daily terms, historically it has shown the faded strength at the same levels.
While MACD also signals downswings to prolong further.
Overall, the major trend has turned into corrective modes for more than two years, ever since shooting star has occurred at peaks of uptrend at 4.0093 levels it has tumbled retrace more than 38.2% Fibonacci levels.
Trade tip:
Since, both leading, as well as lagging indicators, are in bears’ favor, deep slumps are most likely. Well, on trading perspectives, it is worth to snap rallies and deploy tunnel spreads using upper strikes at 3.2434 and lower strikes 3.2196 levels where it is likely to test next strong supports.
