USD/BRL (U.S. DOLLAR/BRAZILIAN REAL)

U.S. dollar continues to gain strength against emerging market currencies. I’ve analyzed several bullish dollar charts in the past and USD/BRL was one of them. Over the past few weeks we have seen a fast move in USD/BRL, breaking above 1.92; inverted H&S pattern’s neckline. This resulted in a spike towards 2.0 levels and it is likely to continue towards the H&S pattern price target at 2.4 levels. Emerging market currencies are completing 2-3 year-long base formations against the USD and this signals strength for the dollar in the intermediate term.