USD/BRL: New all-time high at 5.8761 – Commerzbank

The USD/BRL new 5.8761 all-time high has been shadowed by negative RSI divergence. Analysts at Commerzbank recommend caution.

Key quotes

“Even if upside pressure should retain the upper hand while the USD/BRL pair trades above the March and early April highs as well as the late April low at 5.3566/5.2535 we would tighten profit taking stops.”

“The negative daily RSI divergence which accompanied the latest high which points to at least a minor consolidation being seen this week.”

“13 count on the weekly chart offers another warning signal.”