Societe Generale strategists note that USD/BRL has extended its broader downtrend after breaking a recent consolidation, with an interim low near 4.88 and a sharp rebound. They highlight resistance around 5.08/5.11 from the February low and 50-DMA, warning that failure to clear this zone could see the downtrend persist over the coming days.

Downtrend intact below key resistance

"USD/BRL has extended its downtrend after breaking below the lower boundary of a brief consolidation last month."

"The February low and the 50-DMA around 5.08/5.11 could act as first layer of resistance."

"It will be important to observe whether the pair establishes beyond this hurdle."

"There may be risk of persistence in downtrend if this resistance zone is not overcome."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)