Forex Flash: USD/BRL may have found top at 1.89

Forex Flash: USD/BRL may have found top at 1.89

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Forex Flash: USD/BRL may have found top at 1.89 - BBH

FITITOL--> FXstreet.com (San Francisco) - USD/BRL seems to have found a near-term top at 1.89 with many different factors at play, according to Ilan Solot, Emerging Markets Strategist at Brown Brothers Harriman.

“On the positive side, speculative short BRL positioning [may] be looking a bit stretched,” he says. “On the other hand, the government seems to have successfully changed the market perception of the ‘line in the sand’ for intervention from 1.70 back to 1.80-85. The 1.80 level will be a very hard one to crack even in the context of favourable risk appetite.”