With the break of 4070, it has target on 4140. By now only the congestion and the tentative of down rupture on Jan 13 is a good reason to watch the next moves. A retracement on the 50% of the channel and a good bullish bar would be a nice entry. Cya
It's interesting to note that the USDBRL pair hasn't risen any further despite the route in the Brazilian bond market and the Fed rate hike this week. Of course, both were largely priced into the market. We're currently at one of those crossroads where fundamentals favor further US dollar strength against the Brazilian real whereas technical analysis suggests that...
The Brazilian Real posted its biggest rally since November 2008 Thursday on threats by the country's monetary authority that it may intervene in the FX market to curb its dive. Can the group offset an underlying market current of risk aversion? Or, can the Real's move signal a reversal for the broader Emerging Markets? Unlikely on both accounts.
Weekly:
- Ichimoku setup is long term bullish. We still do not have a Kumo overshade and Chikou will stay in open space for long time. Of course at 3,20 and above Price was a bit overbought, got far above from longer term equilibrium levels, so a correction had to start.
- Heikin Ashi signal is counter bearish, the mkt is in a massive pull back phase. To candles...
Something very negative is going on in Brasil for various reasons.
This will lead to a great opportunity to buy the currency, the equities, the Sugar.
This chart suggests that if 4.00 is reached again it could be the overall bottom for the country.
