USD/BRL to inch higher gradually towards 5.38 and projections of 5.46/5.48 – SocGen

USD/BRL has staged a bounce after defending key support at 5.01 representing lows of last August/November. Economists at Société Générale expect the pair to trend gradually higher.

Risk of an extended down move on a break under 5.01

“The USD/BRL pair is expected to inch higher gradually towards 5.38 and projections of 5.46/5.48.”

“The trend line drawn since 2020 at 5.60 is a key resistance near term.”

“Only if the pair breaches graphical level at 5.01 would there be a risk of an extended down move.”