US DOLLAR vs. BRAZILIAN REAL (USDBRL)

Strength in U.S. dollar and weakness in global equities and commodities has been the theme for the past few months. U.S. dollar strength can be seen not only against Euro but against several emerging and developed market currencies. Technical chart patterns are extremely bullish for the dollar. One of those bullish patterns is the inverted head and shoulder on USDBRL. 2 year-long base formation has almost completed with the neckline (last intermediate term resistance) for the bullish chart pattern standing at 1.92 levels. A confirmed breakout above 1.92 levels will target 2.45 levels in the intermediate term. This chart shows weakness for Brazilian Real and strength for the U.S. dollar.