USD/BRL finds support at channel base bear 5.27 – Société Générale

USD/BRL is stabilizing after testing key support levels, with technical signals suggesting scope for a short-term rebound toward 5.52, Société Générale's FX analysts note.

Higher low at 5.33 signals fading bearish momentum

"USD/BRL decline has stalled after it tested the lower limit of a descending channel near 5.27 in September. It recently carved out a higher low at 5.33, which highlights receding downward momentum."

"This is also denoted by positively diverging daily MACD. A short-term rebound towards last month peak of 5.52 is likely. Overcoming this resistance may trigger a larger up move. Defence of 5.27 will be crucial for persistence in bounce."