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USDBRL Is Through Its Bear Channel Base

USDBRL remains under pressure and has sold off sharply.

  • The recent break of support at 5.1979, May 10 low confirms a resumption of the downtrend and paves the way for weakness towards 5.0107 next, Dec 14 low.
  • A firm near-term resistance is at 5.3740, high May 24.
  • Initial resistance is $5.1979. Note too that USDBRL has this week also breached the base of a broad channel drawn off the Jun 8 low.

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