USD/BRL has been capped at 5.40, but further tactical upside is possible, in the view of analysts at Société Générale.

Recent bullish gap at 5.20 should provide support

“The pair defended the graphical support near 5.01 earlier this month resulting in a quick rebound. It has retested the peak of July at 5.51. Currently a pause is taking shape however recent bullish gap at 5.20 should provide support.” 

“The bounce is likely to persist towards the upper limit of the channel at 5.62/5.64. This remains a crucial hurdle and must be overcome to affirm next leg of uptrend.”