The USD/BRL closed near the 4.8535 price yesterday which was close to its low for the day, and within sight of near-term support which has been rather firm since the 5th of July. USD/BRL traders need to be braced for a potentially fast opening this morning because U.S Consumer Price Index numbers are also going to be delivered around the same time, and this will certainly create a test of current behavioral sentiment based on the inflation results from the U.S data.
The price of the USD/BRL came within sight of the prices seen on Monday, but was not able to push into the slightly lower ratio completely. The 4.85000 price has become rather durable support since the 5th of July and has served as a place reversals have been sparked higher with the 4.9200 to 4.9500 values being challenged a few times. However, today’s U.S Consumer Price Index results could certainly break the recent consolidation depending on the results.
U.S Consumer Price Index Outcome could possibly shake the USD/BRL
If the inflation data from the U.S today comes in higher than expected this could ignite buying of the USD/BRL. If the numbers meet expectations choppy trading of the current range may continue into tomorrow as the Producer Price Index statistics from the U.S are awaited. However, if the Consumer Price Index outcome today is weaker than estimated, the USD/BRL could see some selling pressure ignite. The price range of the USD/BRL for the past month has been roughly between 4.7500 and 4.9500.
USD/BRL Traders without Open Positions should wait for the Results of the U.S Data
- Prices will be rather fast regarding changes in bids and asks for the USD/BRL upon its opening this morning.
- Traders without open positions should monitor the CPI data from the U.S, and allow its outcome to filter into the currency pair for a little while before jumping into the wagering pool.
- While the tight range of the USD/BRL has been consistent the past month and resistance has proven durable, stronger U.S inflation could cause the currency pair to begin testing higher prices.
- If the outcome of the CPI data from the U.S falls into line with expectations, traders may be able to take advantage of the current price range and attempt quick hitting positions which test their technical perceptions. Risk management will be important and remaining realistic about targets is essential.
Brazilian Real Short Term Outlook:
Current Resistance: 4.8660
Current Support: 4.8510
High Target: 4.9120
Low Target: 4.7890
Ready to trade our daily Forex analysis? We’ve made a list of the best forex trading accounts worth trading with.
