Societe Generale: USD/BRL Break Below 50-DMA Signals Move to 5.00
Societe Generale notes that USD/BRL has fallen to 5.07 after threatening 5.20 earlier this month, with a break below the 50-day moving average opening the door to a decline toward 5.00.
USDBRL
Societe Generale has highlighted that the USD/BRL pair has retreated to 5.07 after testing 5.20 earlier in July. The Brazilian real has maintained a firm tone, supported by softer-than-expected US Producer Price Index data and lower Treasury yields.
According to the bank, a decisive break below the 50-day moving average now opens the path for a move toward the 5.00 level. This technical development suggests further downside for the dollar against the real in the near term.
Source: FXStreet Forex News