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Forex Market: USD/BRL daily trading forecast

Yesterday’s trade saw USD/BRL within the range of 2.4285-2.3851. The pair closed 1.14% lower at 2.3961.

At 9:52 GMT today USD/BRL was up 0.04% for the day to trade at 2.3965, having ranged between 2.3954 and 2.4143.

Fundamental view

Investors keenly awaited minutes of the Federal Reserve’s most recent policy meeting, due to be released at 18:00 GMT, for clues of when the central bank will likely initiate its interest rate hike.

Junichi Ishikawa, an analyst at IG Markets in Tokyo, commented for Bloomberg: “If the Fed minutes today show discussions about specific timing of their interest-rate increase, that would boost the likelihood that the next policy statement will alter the wording around keeping borrowing costs low for an extended period. That will spur dollar buying.”

Brazil

The Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística) is due to report on the Latin countrys consumer inflation in September at 12:00 GMT. IBGEs report is projected to show that consumer prices rose by an annualized 6.64% in September, up from 6.51% in the previous month. Month-on-month, CPI is projected to come in at 0.47%, compared to 0.25% in August.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 2.4032. In case USD/BRL manages to breach the first resistance level at 2.4214, it will probably continue up to test 2.4466. In case the second key resistance is broken, the pair will probably attempt to advance to 2.4648.

If USD/BRL manages to breach the first key support at 2.3780, it will probably continue to slide and test 2.3598. With this second key support broken, the movement to the downside will probably continue to 2.3346.

The mid-Pivot levels for today are as follows: M1 – 2.3472, M2 – 2.3689, M3 – 2.3906, M4 – 2.4123, M5 – 2.4340, M6 – 2.4557.

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