USD/BRL Analysis Today 09/07: All Quiet On The BRICS (Chart)

(MENAFN- Daily Forex) The USD/BRL is near the 4.4475 per its close yesterday. The USD/BRL could be interpreted as having embraced a bit of volatility the past few days, after touching a high of 5.4925 on Monday, this after touching a low around 5.4024 this past Friday.

The BRICS summit came and went in Brazil this past weekend without much noise. There were noted absences from the event via leadership from Russia and China. And there was the attention of President Trump who made it clear that nations working in BRICS who are considered anti-American could face additional tariffs of 10% plus. The missing Russian and Chinese leadership and President Trump's loud threats seems to have caused the BRICS summit to pass without much rhetorical storms of its own.

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The effect on the USD/BRL was therefore minimal. The USD/BRL did fall to a low of nearly 5.4025 on Friday of last week, but by yesterday's close was around 5.4475. That is not a significant difference and the changes in value to the USD/BRL should be viewed through the lens of a USD correlation to the broad Forex market Trump and Brazil

President Trump on Monday of this week announced that tariff talks would be extended until the 1st of August, this marks several changes to deadline dates and is likely causing financial institutions to feel as if a softer path is being sought. The USD remains in the weaker elements of its long-term range against many major currencies, the USD/BRL is within the lower part of its range but is still showing caution. The ability of the USD/BRL to track downwards however has been evident and may continue to intrigue traders.

Friday's low seen last week again, challenged depths seen in the summer of 2024, but the USD/BRL remains in its elevated territory via longer term perspectives. But that is dependent on what viewpoint a financial institution takes. The weakness of the USD globally must be balanced with the rather skeptical approach most financial institutions have of the current Brazilian government fiscally Ratios and Speculation Near-Term

Although the USD/BRL is only testing values that it traded last summer, it must be said the Brazilian Real has seen a legitimate bearish trend develop in the USD/BRL. This may continue as long as the broad global Forex market continues to have an outlook that the U.S Federal Reserve may have to actually become rather dovish over the mid and long-term regarding interest rates cuts.

Talk about tariffs and unknowns will certainly cause storms in the USD/BRL as will the occasional news development from Brazil involving Lula da Silva.
Traders who want to pursue lower prices in the USD/BRL may want to simply continue using higher resistance levels that are challenged as a place to look for quick hitting lower moves that are not overly ambitious Real Short Term Outlook:

Current Resistance: 5.4590

Current Support: 5.4420

High Target: 5.4750

Low Target: 5.4275

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