USD/BRL has pulled back after struggling at the upper band of its range since 2020 near 5.75/5.80. Economists at Société Générale note the risk of a dip to the August 2021 low at 5.11 if the 5.22 support is eroded.

5.22 is next support  

“Failure to hold 5.22 can lead the pair lower towards August 2021 low of 5.11.” 

“The 200-DMA at 5.39 is first resistance.”

“Former president Lula called for predictable economic policies, bolstering the appeal of the BRL.”