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BRAZILIAN REAL / U.S. DOLLAR

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BRLUSD trade ideas

Brazilian REAL to accelerate devaluation against the USDWe suggest that the Brazilian Real is in a long cup&handle trend formation here showed on the monthly frame. We expect an acceleration on the REAL devaluation once the 4 reais level is crossed. Other fundamental aspects in favor of this view are the Brazilian Government several recent failed attempts to revert the current negative patter, the decaying Brazilian economy and the country's political turmoil. We can't see any fundamental that could revert the course of the REAL devaluation, on the opposite the odds are stacking against it. Technically speaking the only positive aspect of the chart for the REAL is the overbought RSI/Scholastic for the USD. That signals a possible incoming reset of these indicators, and we would expect some sideways action for couple of months until the 4 Reais level is broken. We favor a long USD for the next 24 months trend.
Long
by Allenvik
Correction to be continued in the Bovespa (Brazil) indexThe Brazil index, Bovespa, often trades in tandem with the Brazilian Real. The index is showing signs of weakness. A good hedge is shorting the Brazilian Real. This is because the Brazilian economy is exchange rate sensitive. See image below to see its consistency. If the breakdown in the Bovespa breaks the wedge to the downside beyond the minimum target, I believe it is limited to 74,000. Right into the red box. At that point I will be a major buyer
by Lanmar
2
USD/BRL: Buyers ReturnThe negative outlook of early January has faded. The then expected breakout did not materialized. Moreover, buyers have returned and are even trying to trigger a new recovery phase of some sorts. For this they must convincingly clear the barrier around 3.3475 thus paving the way towards 3.4750 and perhaps a bit higher. Although not spectacular, it is one of various signs that the USD is regaining strength, at least on a 1-3 month horizon. Keep stops nearby at 3.1520. Primary trend: neutral Outlook: recovery likely, moderately positive > 3.3475 Strategy: trading-buy above 3.3475 Support: 3.1520 / 3.0810 Resistance: 3.3475 / 3.4750+ Outlook cancelled/neutralized below 3.1520 FX_IDC:USDBRL
Long
by buyem_nl