![US500: A further correction towards 5192 before resuming purchases.](/storage/article/39313/preview/qsLahEtdrOtNPM7Y_2560x600_q70.jpg)
Bearish Scenario: Sales below 5220... Bullish Scenario: Buys above 5225 (if price fails to break below decisively) ...
2020-02-13 • Updated
Performance in 2020: +7.6%
Day range: 4.2986-4.3400
52-week range: 3.6922-4.3400
Resistance 4.3500
Support 4.3140
On February 5, the Central Bank of Brazil cut the interest rate to an all-time low of 4.25. In the short-term, that pushes the USD (even more) up against the BRL. In the long-term, that indicates economic weakness which the Brazilian central bank is trying to resolve through this monetary stimulus. Fundamentally, the domestic weakness will also eventually depreciate the national currency.
China takes 22% of Brazilian exports. Due to the Coronavirus, obviously, there will be shortages/lags in Chinese consumption, which in turn will lead to shortages in Brazilian sales. Currency investors know that and try to price-in the future drop accordingly. Hence, this also depreciates the BRL against the USD.
No surprise, the USD/BRL keeps rising. And so far, there is little reason to expect a different move in the nearest future – at least, until the negative effect of the Coronavirus exhausts itself. And that’s not going to happen until April, as per the most recent announcements. Trade accordingly.
Bearish Scenario: Sales below 5220... Bullish Scenario: Buys above 5225 (if price fails to break below decisively) ...
Bearish Scenario: Sell below 39600... Anticipated Bullish Scenario: Intraday buys above 39750... Bullish Scenario after Retracement: Intraday buys above 39150
Bearish scenario: Shorts below 18100 with TP1: 17900... Anticipated bullish scenario: Intraday Longs above 18130 with TP...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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