USDBRL: Break beyond one of 5.01-5.62/5.64 bands essential to affirm a trending move – SocGen

USDBRL’s bounce has stalled after retesting July peak of 5.51. Analysts at Société Générale note that the pair needs to break beyond one of the 5.01-5.62/64 bands to affirm a trending move.

Initial pullback expected towards 5.24/5.20

“An initial pullback is expected towards the bullish gap of last week near 5.24/5.20.”

“It is worth noting that the pair has been witnessing crisscross moves around important Moving Averages which denotes a clear direction is lacking; the price action could remain broadly within limits of 5.01 and multi-year channel at 5.62/5.64. A break beyond one of these bands is essential to affirm a trending move.”