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USD/BRL Trend Down?

Published 06/03/2017, 10:03
Updated 09/07/2023, 11:32
USD/BRL
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CCL
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USD/BRL Daily Chart

USD/BRL: I moved the bullet point into mildly Bearish last time but I was '...cautious because of the wealth of support nearby.'. This proved to be the case as though (rightly) we headed lower in Feb, the pattern formed in recent weeks on the Weekly Chart and also last month on the Monthly Chart were both Bullish Hammers. These are indicative of a change in trend that I'd anticipated might happen when writing last month.

So far, we've broken the Bearish Channel formed since last Dec 2016. However, the break has been scrappy as there have been some Long Black and the Long White Marubozos consecutively following Carnival (LON:CCL).

Now though you can see the mid Jul 2015 low at 3.1120 had held up the market on Friday successfully, the nascent nature of the recent market makes it susceptible to a sideways action or even possibly a Bearish reversal, not saying this will happen just that it may be liable. So with three out of four MAs still pointing lower and also being below the key recent 50% Fib resistance at 3.2728 despite the increasing likelihood for a return higher, I suggest it appropriate to keep the bullet point in mildly Bearish.

Current support is at 3.1120, 3.0854, 3.0382, 3.0296, 2.9972 and 2.9791. Current resistance is at 3.1185, 3.1332, 3.1364, 3.1387, 3.1265, 3.1944, 3.2366 (dynamic), 3.2579 (dynamic).

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