USD/BRL: Trend?
I am certain that we will not continue being Bearish unless this band 3.0860 - 3.0400 (possibly 3.0200) is not dealt with. Upside, we'd need to have consecutive closes over the combination of Long MA(currently 3.2160) and Fib band 3.2093 - 3.2223 to turn it Bullish. Hence, I've decided to move the bullet point above into neutral to see how things work out.
Guess what? Neither the support nor the resistance have been dealt with. Initially the market tried higher and even manged to breach the 3.2093 - 3.2233 resistance.
However, this was only for one day and then prices headed back down. Here again, we have not managed to break down and show direction as the decline has halted sub 3.1400 with last Friday having a Bullish Hammer Pattern on the Daily Chart above. There is some hope for the bears, the Dead Cross of the Short/Medium MA down through the Long MA...but this is too early to confirm or reinforce a move. It looks like we may be stuck within the ranges mentioned above for potentially another month though the Dead Cross does give an incentive to maybe later on try lower.
Support is currently at 3.1322, 3.1216, 3.1185, 3.1070, 3.0861, 3.0797, 3.0593, 3.0514, 3.0466 (dynamic) and 3.0378. Resistance is currently at 3.1487 (dynamic), 3.1759, 3.1795, 3.1901, 3.1974 (dynamic), 3.2061 and 3.2093 - 3.2233. Bullet point stays in Neutral.
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