USD/BRL eyes a support zone at 5.30/5.28 – Societe Generale

USD/BRL up move has stalled near the upper limit of an ascending channel at 5.70, Societe Generale FX strategists note.  

USD/BRL moves towards 5.30

“USD/BRL up move has stalled near the upper limit of an ascending channel at 5.70.”

“Daily MACD recorded multiyear high denoting an overstretched uptrend. The pair has embarked on a deeper pullback after this test. The 50-DMA near 5.30/5.28 is a potential support zone.”

“Defence of the MA could lead to continuation in up move. Recent gap levels near 5.55 which is also the 50% retracement of recent down move is near term hurdle.”