FXWIREPRO: BRL on 8 Month's Highs After Descending Triangles' Base - Short for more Bearish Potential
BRL (Brazilian Real) against USD hits at 3.4850 to flash a fresh 8 months highs.
USD/BRL forms a descending triangle pattern which is bearish continuation trend.
After the pair (USDBRL) breaking below the baseline of descending triangle it has been losing upswings momentum completely.
Leading oscillators are also converging to these dips signal to momentum in selling pressures.
Current prices have slid way below DMAs, while MACD's bearish crossover indicates ongoing downtrend to prolong further.
The occurrence of "shooting star" at 4.0093 and "hanging man" pattern at 4.0166 on monthly charts signal more bearish potential as leading & lagging indicators substantiate the bearish pressures.
Contemplating above technical observations, we could foresee more dips in the days to come, the best way to tackle this trend is to remain short in mid-month futures at every rallies for targets upto 3.1980 levels.
The material has been provided by InstaForex Company - www.instaforex.com