USD/BRL Analysis Today 27/11: Holds Above 5.8000 (Chart)
Date
11/27/2024 2:41:31 PM
(MENAFN- Daily Forex)
The USD/BRL closed Tuesday's trading near the 5.8095 ratio yesterday depending on the bid and ask being quoted. The currency pair has shown the ability in the past handful of days to remain near the 5.8000 mark as a magnate while testing what appears to be a sustained higher price range. A high of 5.8350 was briefly touched yesterday which was also challenged last Friday.
While some traders may be inclined to say the current higher prices of the USD/BRL is only because of incoming President-elect
trump worries, they should also consider the fact the Brazilian Real has shown a lot of weakness nearly the entire 2024 trading campaign and Brazilian fiscal policy is under plenty of scrutiny. Now there is also the addition of political 'lawfare' being waged against people associated with Jair Bolsonaro. The combination of all these dynamics is not helping the value of the Brazilian Real/BRL 5.8000 Ratio and Higher Support
While some speculators may be tempted to bet against the upwards trend in the USD/BRL which has carried the currency pair to new highs, stepping in front of this bullish trend remains dangerous. The ability of the USD/BRL to remain above the 5.8000 level is a credible move. Lows in the USD/BRL have incrementally been creeping higher as support levels increase. The 5.7750 level was tested as a low on Monday, but it was not seriously approached yesterday.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money
Again, some traders may think the USD/BRL has been overbought and the Brazilian Real will show an ability to track lower over the mid-term, but even that is in question as long as Lula da Silva continues to produce fiscal policy which financial institutions believe is inflationary. Short-term traders of the USD/BRL should be careful with today's open. If the 5.8000 level is maintained this could be a bullish sign, and if the 5.8100 is penetrated and hold, higher prices may be seen today/BRL Speculative Conditions
The U.S holiday coming into view tomorrow will effectively make Forex very quiet tomorrow. It will also start to affect trading volumes later today, even as plenty of U.S economic data is released. Traders looking for short-term wagers are encouraged to use quick hitting targets and not remain in the USD/BRL overnight as volumes significantly fall off.
Friday's trading will have some moments with volume, but it may remain rather quiet and speculators should make sure there is enough price action in the USD/BRL before they pursue the currency pair. Support levels appear rather interesting as a place to look for reversals higher in the USD/BRL, but if the currency pair maintains its higher stance some traders may simply want to look for quick hitting upside action.
EURUSD Chart by TradingViewBrazilian Real Short Term Outlook:
Current Resistance: 5.8110
Current Support: 5.8010
High Target: 5.8370
Low Target: 5.7900
Want to trade our daily forex analysis and predictions ? Here are the best brokers in Brazil to check out.
MENAFN27112024000131011023ID1108933234
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.