USD/BRL to head back up towards the 5.8082 October high – Commerzbank

The USD/BRL pair has recovered from the psychological 5.0000 mark and is surging up towards the August, September and early October highs at 5.6635/5.6924, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, informs.

Key quotes

“USD/BRL’s rise above the mid-November and January highs at 5.5163/5.5264 puts the August, September and early October highs at 5.6636/5.6924 on the map.”

“Further up sit the 5.8082 October peak and the May 2020 all-time high at 5.9710 (according to CQG data) as well as the psychological 6.0000 mark.” 

“Immediate upside pressure should be maintained while the currency pair stays above the 200-day moving average at 5.3675. Below it meanders the 55 day moving average at 5.3325 and lie the February low at 5.3044 and the mid-January low at 5.1919 as well as the January trough at 5.1207.” 

“Good support below the 5.1207 January low sits at the 5.0106 December low.”