USD/BRL: Failure to establish above 5.01 could lead to persistence in decline – SocGen

USD/BRL has recently achieved downside projections of 4.75. Economists at Société Générale analyze the pair’s technical outlook.

Below 4.75, next potential objectives are located at 4.69 4.61/4.59

An initial bounce is taking shape and a revisit of 50-DMA near 4.90/4.93 is not ruled out. 

It would be interesting to see if the pair can re-establish above the lower band of previous range near 5.01; failure could lead to persistence in decline. 

Below 4.75, next potential objectives are located at 4.69 and April 2022 lows of 4.61/4.59.