Has anyone here been actively trading $USDBRL? It's currently at 5.1463, showing a slight dip today. The pair can be quite volatile but offers interesting opportunities with the right strategy. What are your preferred entry/exit methodologies for this exotic pair?
I've dabbled in USDBRL a bit, mainly swing trading. The volatility can be a double-edged sword; good for quick profits but also for quick losses if you're not careful. I mostly stick to trend following.
Not a fan of exotic pairs myself, too much overnight risk and spreads can be brutal. Are you using a specific broker for this, and do you find the liquidity acceptable at your typical trade sizes?
I agree, the opportunities are there, but you really need to respect the news flow out of Brazil. Any political developments can send it flying or crashing. My methodology involves tight stop-losses and only trading during liquid hours.
USDBRL has been on my watchlist, but I haven't pulled the trigger yet. What kind of timeframes are you looking at? I'd imagine intraday would be tough with the spreads, but longer-term swings might be interesting.
I actually prefer to trade its inverse, BRLUSD, when I want to take a directional bet on the Real. Finds it a bit cleaner sometimes. What makes you prefer the USDBRL pairing?
Volatile is an understatement for USDBRL! I got burned once trying to catch a falling knife. Now I only look for clear breakout or breakdown patterns on the daily chart with confirmation from volume. What's your setup for identifying entries?