USD/BRL: The retreat is just a correction – Credit Suisse

FXStreet Team FXStreet

USD/BRL is retreating, but weakness is seen as corrective for now, in the opinion of analysts at Credit Suisse. The pair reached a high on 14 May at 5.972 and has pulled back since then, currently trading at 5.756.

Key quotes

“USD/BRL is seeing some corrective weakness and given the bearish weekly RSI divergence this is seen having scope to extend further yet.”

“Our core bias remains to the upside and we look for further strength to unfold over the medium-term. The market has stalled at the psychological barrier at 5.97/6.00, however, we see scope for a break above here, with next resistance at 6.21.”

“Support at the 55-day average and 38.2% retracement of the 2020 surge at 5.23/22 ideally holds the setback.”

Author

FXStreet Team

FXStreet

EUR/USD eases marginally, back to 1.1800

EUR/USD navigates a narrow range on Thursday, hovering around the 1.1800 neighbourhood in a context of humble gains in the US Dollar. The pair’s lacklustre performance come amid the unabated trade uncertainty, geopolitical tensions in the Middle East and the cautious tone from the ECB’s Lagarde.

GBP/USD holds above 1.3500, struggles to gain traction

GBP/USD rebound from session lows but stays below 1.3550 on Thursday. The cautious market stance helps the US Dollar stay resilient against its rivals and makes it difficult for the pair gather recovery momentum. Investors await headlines that will come out of the US-Iran nuclear talks.

Gold clings to small gains near $5,200 ahead of US-Iran talks

Gold trades marginally higher on the day above $5,150 on Thursday as investors refrain from taking large positions. The US and Iran will hold the next round of nuclear talks in Geneva on Thursday, outcome of which could have significant implications for risk perception.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

The one thing everyone is on the lookout for is US action of some sort against Iran

The FX market is minestrone soup these days. It is befuddled by conflicting data, rumors and small stories exaggerated out of proportion, and Trump-generated uncertainty.

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.