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TECHS - USDBRL Trades Through Key Trendline Support

LATAM FX

USDBRL continues to trade lower today as the pair extends the downleg from 5.2202, the Oct 6 high.

  • Today’s sell-off has resulted in a break of trendline support at 4.9450 - the trendline is drawn from the Jul 28 low and represents a key support.
  • A clear break of the trendline would undermine the recent bull theme and signal scope for a deeper retracement, towards 4.8408, the Sep 19 low.
  • Initial resistance to watch is 5.1021, the Oct 13 high. A break would be a bullish development.

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