USD/BRL: Break below 4.84 to extend decline – SocGen

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Break below 4.84 would lead USD/BRL downtrend to resume, analysts at Société Générale report.

5.01/5.04 is an important resistance zone

USD/BRL defended lower limit of a multi-month channel near 4.69 resulting in a phase of rebound. Interestingly, it has so far struggled to re-enter previous range. Upper band of that channel near 5.01/5.04 which is also the 200-DMA is an important resistance zone. 

In case the pair fails to defend recent pivot low at 4.84, one more leg of downtrend can’t be ruled out towards 4.69, and 2022 low at 4.61/4.59.