The USD/BRL has reacted to Monday’s early lower depths with a rather swift punch upwards which essentially creates more speculative opportunities.

The USD/BRL is situated near the 5.2778 realm as of this writing, but this is before the currency pair opens for trading today. Having hit a low of 5.1216 on Monday the USD/BRL has fought its way higher. The depths explored earlier this week last traded sincerely around the same values during the third week of June.

Traders of the USD/BLR as always should be ready for some type of opening spike and should wait until the market has initiated to pursue the currency pair in order to let things calm down for a moment.

Entry prices orders should be used when trading the USD/BRL to make sure price fills are within reason. Trading volumes in the USD/BRL currency pair are sometimes light which can lead to expectations not being met while opening a position. The USD/BRL is now close to perceived technical resistance. Intriguingly, the current value of the Forex pair is near important lows generated the day before last week’s U.S Fed interest rate hike.

USD/BRL resting near Important Resistance which should be watched

It may come as a surprise if the USD/BRL were to break current resistance with a sustained effort, but if this occurs it is likely a sign that large financial houses are acting on transactions the public is not aware of regarding business enterprises. Speculators’ who have the courage to step in and sell the USD/BRL at its current levels, after the currency pair opens today, may be making a bold but wise choice. If current resistance is proven to be rather durable it may serve as a solid launching point for short positions. 

Traders however need to be careful because although the USD/BRL did test significant support on Monday, the move upwards also highlighted questions which remain about the global economic picture. The U.S Fed is likely to continue raising interest rates, the lack of clarity regarding U.S inflation data and growth numbers could continue to foster dynamic trading conditions which cause volatility.

• Technically it will prove interesting to see if the 5.2000 to 5.2900 ratios can develop as a solid trading range for the USD/BRL.
• If current resistance proves weak this could mean financial houses are not comfortable regarding economic outlook and remain skeptical, which could produce additional buying of the USD/BRL.

Final Thoughts about Current Trading Perceptions:

The range the USD/BRL is now within should be watched carefully.  If current resistance levels prove adequate this could be a solid bearish signal for the USD/BRL. However, nervous sentiment is still strong within the global markets and volatility may continue to be seen near term. Risk management is essential. Traders looking for lower prices via selling positions should use realistic targets and not be overly ambitious.

Brazilian Real Short-Term Outlook

Current Resistance:  5.2885

Current Support:  5.2575

High Target: 5.3217

Low Target:  5.1859

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DOT/USD has continued to fall and is traversing extremely important support levels in early trading this morning as buyers seem to have disappeared.

DOT/USD is trading near the 9.7000 price as of this writing.  DOT/USD was trading near the 10.7500 mark as late as the 23^rd of May, this after climbing back from a low of 9.1600 seen on the 19^th of May. On the 12^th of May DOT/USD did trade below the 7.0000 level temporarily. While optimists, if any are left, may proclaim the ability of Polkadot to climb higher off of these lows was an accomplishment, even they might not proclaim it a victory.

DOT/USD remains locked in an aggressive long term bearish trend.  Let’s please recall in late October of 2021 DOT/USD was trading near the 55.0000 level. The fall from these apex highs mirrors the results of the major cryptocurrency market, and it also reflects the seemingly dubious fact that speculative buyers are in very short supply.

DOT/USD is traversing values today, which were last traded in January of 2021.  Technically this is significant because it shows DOT/USD is trading below the over exuberant prices which started to develop in earnest around the middle of January in 2021, when prices in the digital asset sphere started to launch upwards across the board. In early February of 2021 DOT/USD was trading near the 20.0000 mark. If prices continue to slump and additional ‘supposedly’ support levels crumble, if would not be utterly shocking to see DOT/USD trade near the 6.0000 mark again and potentially even lower.

While backers of Polkadot may say its current price is vastly oversold, the lack of buyers able to produce a significant reversal higher is troubling.  If speculative buyers do not show an appetite for DOT/USD there is reason to suspect the cryptocurrency could falter more. A low of around 9.5000 was demonstrated early this morning and if this level erodes, technically traders should begin to think about important psychological marks if lower prices are sustained. This means numbers like 9, 8 and 7 could be considered in USD values.

Speculators should remain cautious and realistic about their ambitions. The price velocity of DOT/USD has not been ultra-powerful, but its inability to trade over the 10.0000 ratio could prove significant if this value starts to look like it will not be flirted with in the short term. Traders need to use solid risk management as sellers, and make sure they use entry price orders to meet expectations via their fills. Looking for more downside action with DOT/USD appears to be the logical wager near term.

Polkadot Short-Term Outlook

Current Resistance: 10.3400

Current Support: 9.5300

High Target: 11.2600

Low Target: 7.9800