Leaning on Brazil for the Long Term... ridethepig
Updated
As we enter into the end of the week a good time to update the long term economic strategy with BRLMXN. There are plenty of ways to take advantage of the pension reform in Brazil as this is going to provide steel support for Brazilian exposure. We are using MXN as a vehicle for this cycle as the erosion continues.
For the technicals we are trading at the very lows in Wave 2 for this cycle, the risk:reward is very attractive for those sidelined and given the nature of the coming impulse wave we can can extend as far as 5.88x for initial targets with 6.88x for completion. To the downside 4.47x will hold, stops below there will be enough to survive any overshoots.
Best of luck all those in BRLMXN...
For the technicals we are trading at the very lows in Wave 2 for this cycle, the risk:reward is very attractive for those sidelined and given the nature of the coming impulse wave we can can extend as far as 5.88x for initial targets with 6.88x for completion. To the downside 4.47x will hold, stops below there will be enough to survive any overshoots.
Best of luck all those in BRLMXN...
Note
Should come as no surprise that the Brazilian government are now running mass £50M advertising campaigns on Bloomberg
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