USD/BRL to slide towards 4.95/4.89 on a break under 5.22 – SocGen

USD/BRL erased the 200-day moving average (DMA) at 5.37 earlier this week and is now lining up a test of 5.22. Below here, next objectives would be 5.11, last September low and the range at 4.95/4.89, economists at Société Générale report.

200-DMA at 5.37 to cap an initial bounce

“Next potential support is located at 5.22, the 61.8% retracement from last June.” 

“An initial bounce is likely however 200-DMA at 5.37 is likely to cap.”

“If the downtrend persists below 5.22, next potential objectives would be at 5.11, last September low and the lower band of the range at 4.95/4.89.”