The Brazilian Real stalls its fall versus the Dollar

The emerging markets currencies have been affected lately by the drop in commodity prices and the rally of the US Dollar. However, on the 4 hour chart of the USD/BRL we can see that the pair has found a good resistance around the 3.5619 level, which is indicating us that the Brazilian Real is starting to gain some ground versus the Dollar. The pullback has taken the pair to the 3.4236 low where it has try to go back up, but on the last 4 hour candle we can see that the bearish momentum seems to have come in again. If the pair breaks below the 3.4236 level, then the 200 period exponential moving average (blue line), around the 3.3005 level could become its next support. To the upside, the 3.5619 level could become resistance again if the pair visits that zone one more time. The MACD indicator is showing us that the downtrend is still in place, but the bars on the histogram are showing us that the downtrend is losing its strength.