The USDBRL pair has been trading within a steady 2-decade long Channel Up, which is well displayed on this 1W chart. As you see last time it formed a 1W Death Cross (MA50 crossing below the MA200) after a Higher High, it dropped significantly and that was still a fairly early buy signal on Coffee (KC) on a long-term 5-year horizon.
At the moment USDBRL hasn't made a new High in more than 1 year and the 1W MA50 (blue trend-line) is rolling over. Can this be a very early buy signal on Coffee before confirmation comes by the 1W Death Cross? It would appear that way and in our opinion that is an excellent long-term buy opportunity on Coffee futures.
** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
I will be honest with you. I'm from Brazil and the economy here is not good. killed by covid-19 on the rise and beginning of presidential campaign. country is too divided between left and right. Loose squid etc... I believe that brl/usd can reach around R$7.00. I think your analysis is missing a fundamentalist element.
you are wrong in my view.
foaraman
⋅
@danielshinoda, Hi Daniel, i Think he is Right, when metals and softcommodities rally its good for Brazil where more than 30 - 40% of export is in that sector. It needs some time until a population of a country benefits of such a fundamental movement.
you are wrong in my view.