USD/BRL is gradually drifting towards the lower limit of its large consolidation at 4.95/4.89. Should this support gets violated, the pair would extend the down move towards 4.81 and projections of 4.73, analysts at Société Générale report.

USD/BRL to rebound towards 5.28 if 4.89 holds

“4.95/4.89 is a crucial support zone. Defending this can result in a rebound towards 5.28 and perhaps even towards 5.38, the low of November.” 

“Only if support at 4.89 get violated, would there be a risk of extension in the down move towards 4.81 and projections of 4.73.”