Quotes from Societe Generale Cross Asset Research:
-USD/BRL has reached 2008 highs of 2.62/2.65 which is also the upper limit of an upward channel since 2012. Monthly indicator is testing a graphical ceiling suggesting 2.62/2.65 as a pivotal level.
-The pair is more likely to show a retracement towards 2.45 and even 2.37. Only a definite break above 2.62/2.65 will signal the possibility to extend the uptrend.
-The pair has been undergoing a recovery phase since 2011 with an overlapping wave structure. It is worth noting that, in the last three years, the up moves post consolidation have typically ended near the equality to the moves going into the formation (log scale at 2.77).
The material has been provided by InstaForex Company – www.instaforex.com