USD/BRL: Buyers Return

The negative outlook of early January has faded. The then expected breakout did not materialized. Moreover, buyers have returned and are even trying to trigger a new recovery phase of some sorts. For this they must convincingly clear the barrier around 3.3475 thus paving the way towards 3.4750 and perhaps a bit higher.

Although not spectacular, it is one of various signs that the USD is regaining strength, at least on a 1-3 month horizon. Keep stops nearby at 3.1520.

Primary trend: neutral
Outlook: recovery likely, moderately positive > 3.3475
Strategy: trading-buy above 3.3475
Support: 3.1520 / 3.0810
Resistance: 3.3475 / 3.4750+
Outlook cancelled/neutralized below 3.1520

USDBRL