The USD/BRL has produced another round of head scratching trading results, as it finished yesterday near technical lows.

The USD/BRL traded near value last seen in the middle of June as it ended yesterday’s Forex session near the 5.0285 ratio. On the 25^th of August the USD/BRL currency pair found itself trading near the 5.1420 mark, but by Friday the USD/BRL actually started to decline in value. This came on the heels of the central bank policy speeches from the U.S in Jackson Hole which seemingly had little effect on the USD/BRL.

This weekend’s televised debate for President of Brazil also seemed to have little effect on the temperament of investment houses. The prospect of a left leaning political leader taking the realms of Brazil has not flustered the value of the USD/BRL as of yet. The election will be held on the first Sunday of October, and if a majority 50% plus winner is not produced the second round for President will be held the last Sunday of October. Technically the USD/BRL is hovering near very important support.

The 5.0000 Level is within Sight, but Support could prove to be lower

Speculatively the USD/BRL has produced a rather astonishing move lower while many other major currencies paired against the USD struggle to attain value.  The USD/BRL was trading near 5.5100 on the 21^st of July and has incrementally moved lower since then. However, it must be pointed out that on the 10^th of August the USD/BRL was trading near the 5.0400, but then moved higher and touched a ratio of nearly 5.2120 on the 19^th of August. However, the bearish trend is rather startling.

• Today’s opening in the USD/BRL should be monitored. If there is no gap upwards it could be a signal additional selling pressure could be demonstrated.
• If a gap higher is produced on the opening and the USD/BRL is suddenly testing the 5.0350 level, traders may believe it is an opportunity to look for quick hitting moves upwards.

The Strong Trajectory Lower in the USD/BRL Remains Suspicious but the Trend has been Durable

Speculators will have an opportunity to wager on the short term range of the USD/BRL, if it can remain within a calm range.  The opening should be watched for sudden potential gyrations. The USD/BRL continues to look like it has been overbought, but the trend which has been produced technically leaves little to argue, and if the 5.0000 were to prove vulnerable a move towards the 4.9700 level would not be a complete shock. Traders should look for quick hitting trades and have their risk management working today.

Brazilian Real Short Term Outlook:

Current Resistance:  5.0395

Current Support:  5.0157

High Target: 5.0796

Low Target:  4.9723

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USDT/USD remains under its spoken 1.00 USD mark, and its inability to achieve this level for a while may be igniting speculative considerations.

USTD/USD is trading below 1.000. As the most important stable coin in the cryptocurrency world, Tether proclaims that it functions as a solid fundamental element within for digital assets allowing cryptocurrency businesses to transact USDT/USD with other cryptos to lock in value. However during the past month with the destruction of TerraUSD and its oblivion from the world of stable coins, questions have arisen regarding all the remaining stable coins including Tether.

USDT/USD though appears rather intriguing from a speculative viewpoint because it has found it difficult to achieve the 1.00 USD equilibrium on a steady basis since the 11^th of May. On the 12^th of May USDT/USD sank momentarily to a value of nearly 0.93960000 when fear was rampant in the cryptocurrency world, as a firestorm of selling engulfed the broad market and concerns about stable coins climaxed as TerraUSD failed.

From a speculative consideration USDT/USD is difficult to trade because a lot of leverage will likely be needed by a day trader to get a worthwhile result if they do not have hundreds of thousands of dollars in their account to use, even if the trade moves in the intended direction the trader wants. Entry price orders must be used to make sure fractional differences are fulfilled and there are no unexpected price fills. Also, Tether moves as slow as a snail, so fast results cannot be anticipated. Patience and the ability to withstand the fatigue of transactions costs via overnight trading of USDT/USD would have to be needed too.

Simply put if a speculator wants to sell USDT/USD because they think the so called stable coin can fall further in value, they might be right, but the trader may not have enough time to make the trade profitable because they will likely have to give up before a positive result can be made.   However, if a trader has deep pockets, time and understands the costs involved in speculating on USDT/USD there could be an opportunity to wager on further downside momentum. Folks, this is why hedge funds are the community who is mostly trying to short Tether, they have the money and the time to pursue this option.

Traders who cannot actually speculate on USDT/USD however can use Tether to their advantage. USDT/USD serves as an interesting barometer of the broad cryptocurrency market. The inability of Tether to seriously trade near 1.00000000 in the past few weeks is rather startling and indicates the bearish market has not disappeared in cryptos. As long as USDT/USD remains under the 1.00000000 ratio, it may be a sign selling will remain the stronger force in the digital asset world.

Current Resistance: 0.999371000

Current Support: 0.99890000

High Target: 0.99960000

Low Target: 0.99850000

LUNA/USD has gained rapidly in the past day, and has likely turned negative sentiment among skeptics into a reconsideration of upwards potential.

As of this writing LUNA/USD is still below 100.00000000, but the value of Terra has delivered a rather impressive gain in the past two days. After slipping to a low of nearly 75.68000000 on the 18th of April, LUNA/USD now is traversing the 95.00000000 level with its typical amount of fast trading. However, the rise upwards in the past two days represents almost a 20% change of value, not a bad result, and some speculators if they were lucky, hopefully have been able to capture some of the profits made when Terra marched higher.

LUNA/USD has certainly mirrored nervous sentiment seen in the broad cryptocurrency market the last two and half weeks. However, Terra’s high of approximately 120.00000000 on the 5th of April was an all-time high. The move lower after reaching that apex was strong, and the percentage loss was likely enough to make many optimistic bullish speculators reasons to pause and consider the negative trend.

Yet the last two days of trading has reinvigorated LUNA/USD with a solid move into a rather intriguing part of its price range. Terra has also recently announced that its ‘corporate treasury’ has added additional Bitcoin to its holdings. The notion that LUNA/USD has a mandated policy from its leaders to hold BTC within its Terra financial infrastructure, and continues to buy Bitcoin as a ‘foundation’ likely adds to the allure of LUNA/USD for its bullish audience.

The broad cryptocurrency market has climbed also in the past couple of day within most of the major digital assets, but the percentage change upwards in LUNA/USD is stronger than the average return of most other cryptocurrencies. If LUNA/USD can maintain it’s trading near the 95.00000000 juncture in the short term it may spark additional buying. Perhaps short sellers may believe the move higher the past couple of days, makes Terra a candidate to look for quick hitting trades that seek limited downside too.

However, traders who are going to bet against the upwards trend that LUNA/USD has created in the past two days should be cautious with their leverage and stop loss orders. If LUNA/USD continues to demonstrate reasonable strength in the short term and holds onto a substantial amount of the gains it has made, another leg up is certainly not out of the question. Buyers looking for additional moves higher cannot be blamed, and igniting long orders on slight reversals lower near current short term support levels may prove to be a worthwhile wager.

Terra Short Term Outlook:

Current Resistance: 96.42000000

Current Support: 94.25000000

High Target: 119.2500000

Low Target: 88.75000000