Societe Generale analysts highlight technical barriers at 5.25 and 5.32/5.34 as the pair approaches critical levels.
The USD/BRL pair has rebounded from an interim low near 4.88, now testing the 200-day moving average and a descending trend line around 5.25. Analysts note resistance at 5.32/5.34 could determine if a trend reversal is forming.
Earlier this month, the pair found support near 4.88 before climbing toward current levels. A failure to hold above 4.99 may signal a resumption of the downtrend, while breaking resistance could shift momentum.
Brazil’s Bovespa index fell below 170k for the first time since late January, with foreign portfolio investors selling BRL3.42bn in equities this month through June 9.