USD/BRL trades at levels last seen in April when the pair reached the 5.7560 mark. Above here lies 5.8795/5.9710 and the psychological 6.000 level, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.

Recent surge higher has nearly reached the 5.7560 April high

“USD/BRL’s rise is seen to accelerate higher and has practically reached the April high at 5.7560. The next higher March peak at 5.8795 may soon also be reached. Further up the May 2020 high can be found at 5.9710 and also the psychological 6.0000 mark.” 

“While the currency pair stays above the 5.4342 mid-October low we will retain our short-term bullish view. Further down meander the 200 and 55-day moving averages at 5.3533/14 and lies the five-month uptrend line at 5.3022.”