Published: 2024-05-08T16:03:38.000Z
Chart USD/BRL Update: Consolidating test of the 5.0520 Fibonacci retracement - background is weak
Senior Technical Strategist
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Anticipated losses have reached the 5.0520 Fibonacci retracement
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 5.2910 | * | 16 Apr YTD high | S1 | 5.0520 | ** | 50% ret of Dec-Apr rally | |
R3 | 5.2500 | * | congestion | S2 | 4.9950/00 | * | 61.8% ret of Dec-Apr rally; congestion | |
R2 | 5.2000 | ** | congestion | S3 | 4.9600 | congestion | ||
R1 | 5.1000 | * | congestion | S4 | 4.9200/50 | ** | 22 Feb (w) low; 76.4% ret of Dec-Apr rally |
Asterisk denotes strength of level
16:50 BST - Anticipated losses have reached the 5.0520 Fibonacci retracement, where oversold daily stochastics are prompting short-term reactions. Broader weekly charts continue to point lower, however, suggesting potential for still further losses in the coming sessions. A later close beneath here will add fresh weight to sentiment and extend mid-April losses towards 4.9950 - 5.0000. Fresh consolidation is expected to develop around here. Meanwhile, a close above congestion resistance would delay downside development and turn sentiment cautious, as prices then settle into fresh consolidation beneath further congestion around 5.2000.