USD/BRL Analysis Today 09/07: Near-Term Lows Persist (Chart)
(MENAFN- Daily Forex) The USD/BRL has traded off of highs seen early last week and has been able to sustain lower near-term depths the past two days of trading.
The USD/BRL closed trading yesterday around the 5.4714 mark, which is rather solid accomplishment considering that the high for the currency pair last Tuesday touched the 5.7000 ratio. The ability to reverse lower and correlate with the broad Forex market will be welcomed by Brazil. Financial institutions which have proven bullish with the USD/BRL were given a sign the Brazilian government acknowledges it needs to remain fiscally responsible last week.
However, before a full blown celebration takes place financial institutions and the Central Bank of Brazil will want to see that Lula da Silva's Workers' Party actually practices better budgetary management. The USD/BRL remains within the loftier realms of its long-term value because fears remain that Brazil's current government will talk a good game, but not practice what it says. However, the USD/BRL has certainly come off of highs and the sustained near-term lows are a good sign for the moment for bearish sentiment.
Top Forex Brokers
1 Get Started 74% of retail CFD accounts lose money
USD/BRL Support Ratios and the Brazilian Central Bank
The USD/BRL is now trading at a level it tested on the 26th of June; on the 11th of June the USD/BRL was near the 5.3300 level. This is pointed out to demonstrate the upwards mobility of the currency pair and the fact that it remains in elevated territory. Before speculators want to jump on a potential bearish betting trend they should practice caution and make sure they believe their technical perceptions are correct.
Since the 19th of June the current value of the USD/BRL has been tested, this before it eventually rocketed higher on the 28th of June and kept upwards momentum until the 2nd of June, this as Lula da Silva and the Central Bank of Brazil openly disagreed about monetary policy. Brazilian Real traders will also have to keep their eyes on the U.S today and remainder of this week/BRL and U.S Fed Chairman Jerome Powell
Fed Chairman Jerome Powell will be speaking to the U.S Senate today about monetary policy outlook considerations. Powell is expected to sound cautious, but if he admits U.S GDP is struggling this might help the USD become weaker in Forex.
Traders of the USD/BRL should be prepared for volatility today and speculators aiming for lower realms should make sure they have full risk taking tactics working. Price velocity could become fast today in the USD/BRL. Powell also speaks tomorrow before the U.S House and inflation data via CPI and PPI will come later this week from the U.S.
Brazilian Real Short Term Outlook:
Current Resistance:
5.4870
Current Support:
5.4630
High Target: 5.5360
Low Target:
5.4340
Want to trade our daily forex analysis and predictions ? Here's the best brokers in Brazil to check out.
MENAFN09072024000131011023ID1108423808
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.