The Brazilian Real (BRL) has seen a rather steep decline since it's peak in 2012, but it's time to be a contrarian. After peaking at 6.0000 and a cover page in the Economist showing an oxygen mask on the Cristo Redentor statue, indicating that the BRL has a tough time and maybe could die tells us that's time to be a contrarian in regards to BRL and look for strength.
In the months to come, we expect USD/BRL declining to at least 4.0000 and maybe even closer to support near 3.7600.
Trading recommendation:
Sell USD and buy BRL for a decline to at least 4.0000 in the months ahead
