USD/BRL Analysis Today - 04/09: Choppy Results (Chart)
(MENAFN- Daily Forex) The USD/BRL remains within the higher part of near, mid and long-term price ranges technically as questions regarding fiscal policy and Political clashes flourish within Brazil.
The USD/BRL closed near the 5.6490 ratio yesterday, essentially turning in a sideways day of Forex. The USD/BRL did touch a high of nearly 5.6970 on Friday, so it can be argued the currency pair has demonstrated a slight turn lower the past couple of days. However, the trading in the USD/BRL is demonstrating a non-correlation to the broad Forex market still, which is a sign Brazilian financial institutions remain nervous about clashes regarding fiscal and political policies in the nation.
Since the speech by the Brazilian Central Bank leader at the Jackson Hole Symposium two weekends ago, the USD/BRL has traversed higher values. A tighter fiscal policy is wanted by the Brazilian Central Bank, but the government of Lula da Silva is not going to deliver less spending anytime soon. The USD/BRL is below its highs seen in early July of this year, but it is still within dangerous shouting distance of the 5.7000 realm.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money U.S Federal Reserve and Non-Correlation of the USD/BRL
Before yesterday's nervous price action in global markets the USD/BRL was not enjoying a bearish streak like many other major currencies teamed against the USD. The weakness of the USD since late July has been on display in many other major currency pairs, but the USD/BRL has taken advantage of this price action only in spurts. The USD/BRL remains locked within its higher realms. While the U.S will see the Non-Farm Employment Change data this Friday, even if the numbers come in weaker than anticipated the USD/BRL may not be able to muster a strong amount of selling.
On the 19th of August the USD/BRL was trading around the 5.3800 price which was a solid accomplishment of lower price action, but as financial institutions braced for and then were given the speech by the Brazilian Central Bank leader at the Jackson Hole Symposium, the currency pair began to climb higher again. There have been no signs of a significant selloff since then. And the notion that global Forex appears nervous potentially near-term is likely not going to help spark bearish momentum in the USD/BRL near-term Altitudes for the USD/BRL in the Near-Term
Day traders should be very cautious in the short-term. It appears the global markets may be entering a dangerous and volatile phase the next few days of trading. Financial institutions want the U.S Fed to be more aggressive and there are many questions about if this is going to happen.
U.S jobs numbers need to come in weaker this Friday for the USD to weaken, but will it help create a selloff in the USD/BRL which is suffering from internal political problems in Brazil? Speculators may want to wager on slight upside in the near-term, but risk management will be very important. If the 5.6600 and 5.6700 begin to see sustained trading this might be a bullish sign for USD/BRL traders over the near-term.
Brazilian Real Short Term Outlook:
Current Resistance:
5.6520
Current Support:
5.6410
High Target: 5.6990
Low Target:
5.5990
Want to trade our daily forex analysis and predictions ? Here are the best brokers in Brazil to check out.
MENAFN04092024000131011023ID1108637156
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.