USD/BRL: Close on High Monday, Opens Door to Fast Open Today – 19 July 2022
The USD/BRL will begin trading with a possible volatile open, because it finished near highs on Monday before closing for the day.
The USD/BRL is near 5.4385 as of this writing before the Forex market opens. Having closed at nearly its highs on Monday, the USD/BRL which is prone to spikes on its openings may find fast trading action to begin the day, and speculators should be cautious and monitor conditions if they are thinking about launching a position early. Before moving to yesterday’s highs which challenged marks seen on the 15th of July, the USD/BRL did touch a low of nearly 5.3525.
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On the 14th of July the USD/BRL did climb to an apex around 5.4910, which challenged values not seen since the last week of January this year. The reversal lower from this high should not be surprising to speculators and be considered a natural reaction. Technical traders may be intrigued by the notion the USD/BRL continues to trade within sight of this apex and yesterday’s close at highs may cause some to suspect additional buying action will spread.
A Spike in the USD/BRL will not be Surprising during the Opening for Trading Today
Traders will need to be braced for a quick opening, and the question is if a reversal lower may be seen for the first few minutes as a natural reaction to finishing near highs on Monday. If a trader wants to continue to follow the bullish trend of the USD/BRL, it may prove worthwhile to see if early support ratios can prove durable and ignite another round of upwards traction. If the USD/BRL begins to flirt with the 5.4490 mark and crosses the 5.4500 in the short term this may be considered a bullish indicator.
Strong bullish behavior in the USD/BRL could be sparked by a move above the 5.4500 vicinity.If support levels prove durable near the 5.4320 level in early trading, this could spark buying.
USD/BRL Bullish Trend may remain Speculatively Worthwhile
Traders who choose to pursue long positions of the USD/BRL should monitor the opening of today’s trading carefully. While the move higher last week suffered a sharp reversal lower, the bullish trend of the USD/BRL has likely not come to an end, and speculators may believe yesterday’s close near highs is an indication further moves higher could be seen. It may seem too easy to simply say a solid opening today without a significant reversal lower is a signal the USD/BRL could climb higher near term, but sometimes the trend is not lying. Risk management as always should be practiced.
Brazilian Real Short-Term Outlook
Current Resistance: 5.4501
Current Support: 5.4291
High Target: 5.4910
Low Target: 5.3645
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