E Coffee And USD/BRL Correlations!

Traders want us to share some interesting patterns on USD/BRL and Coffee. Well, as you know, Brazilian Real is correlated to Coffee and in the picture below you can clearly see that correlation, it's just an inverted Coffee chart. Anyway, the most important are wave counts; USD/BRL has a really nice bearish setup, especially with that sharp decline after only three waves of an A-B-C correction that can be already confirming a bearish reversal. At the same, Coffee may have a completed an ending diagonal (wedge pattern) right at projected 85 support level. However, at this stage it is very important to keep eyes open on confirmation levels, so if USD/BRL goes below 3.6, then we can expect even more weakness within wave (C)/(3), and if at the same time Coffee breaks above 125 region, then we can easily confirm our wave counts.

Coffee vs USD/BRL, Daily

USD/BRL, Daily

Coffee, Daily

 

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