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USD/BRL falters below 50-DMA, retests 5.27 support – Société Générale

USD/BRL’s early-October rebound stalled below the 50-day moving average at 5.37/5.40, signaling weak follow-through, Société Générale's FX analysts note.

Failure at 5.37/5.40 keeps USD/BRL bias lower

"USD/BRL experienced a sharp bounce in first half of October however it has failed to maintain above the 50-DMA (5.37/5.40) highlighting a lack of steady upward momentum. The pair is now challenging September trough of 5.27."

"A brief bounce cannot be ruled out however inability to overcome last week high near 5.37/5.40 could lead to persistence in decline. The next objectives are located at projections of 5.20/5.17 and 5.10."


AUD/USD: Further advance in AUD is likely limited to a test of 0.6560 – UOB Group

Any further advance in Australian Dollar (AUD) is likely limited to a test of 0.6560; the major resistance at 0.6580 is not expected to come under threat.
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NZD/USD: Clear break above 0.5665 is unlikely – UOB Group

There is scope for New Zealand Dollar (NZD) to test 0.5665; a clear break above this level is unlikely. In the longer run, weakness in NZD has stabilized; for the time being, it is likely to trade in a range between 0.5605 and 0.5695, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
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