USD/BRL Technical Strategy: PENDING Short
- USD/BRL may be forming a Head and Shoulders topping pattern
- Brazilian politics are likely the biggest factor leading BRL charge
- Decline may accelerate after daily close below neckline support
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The Brazilian Real has been losing major ground against the US Dollar since the start of the year. However, a convincing Head and Shoulders pattern – a setup likely inspired by Brazilian politics – appears to have emerged and may indicate a bearish reversal for the pair.
The recent tumultuous election that saw the firebrand Social Liberal Party Leader Jair Bolsonaro rise to power boosted the local currency. This in large part has to do with his affirmation of central bank independence and appointment of Chicago School-trained Finance Minister Paulo Guedes. He is an advocate of mass privatization and of reforming the country’s bloated pension system.
USD/BRL Leading to Potential Bearish Reversal
A neckline at 3.6861 has provided adequate support despite a brief false breakout in
The post USD/BRL Techninal Analysis: Bearish Reversal in Sight? appeared first on Daily Forex Signals.
SOURCE: Daily Forex Signals – Read entire story here.