EUR/BRL set to recover towards the 6.0875/6.2190 resistance zone – Commerzbank

The Brazilian Real is giving back some of its recent gains. The EUR/BRL pair formed an interim low at 5.8457 and is seen heading back up towards resistance at 6.0875/6.2190, according to Axel Rudolph, Senior FICC Technical Analyst at Commerzbank.

EUR/BRL bounces off the July 2020 low at 5.8843

“EUR/BRL’s slip has taken it close to below the July 2020 low at 5.8843 to its June low at 5.8457, to slightly above the late April 2020, late May 2020 and late June 2020 lows at 5.8073/5.7882, before heading back up towards the December low at 6.0875. Further minor resistance is seen at the 6.1164 June 8 low and the 6.2190 June 11 high as well as along the three month resistance line at 6.2345. Then there are the January and May lows at 6.2944/6.3023.” 

“Further resistance sits at the 6.4355 May 31 high. While remaining below it, overall downside pressure should retain the upper hand.”

“Only if the 6.5627 late May high and then the 6.5916/6.6035 resistance area were to be bettered, would we allow for the January highs at 6.6778/6.7066 to be reached.” 

“Below 5.7882 the 2019-2021 support line can be found at 5.5715.”