The technical picture of the iShares MSCI Brazil ETF (EWZ) on our daily chart shows that the index continues to trade above a medium-term upside support line taken from the low of March 29th. At the same time, the price is trading near the current highest point of June, at 42.06. Although there is a good indication that EWZ could continue moving north, we will wait for a break above the 42.06 barrier first, before getting comfortable with higher areas.
If, eventually, the ETF makes its way above the 42.06 hurdle, this will confirm a forthcoming higher high, possibly inviting more buyers into the game. EWZ could then travel towards the 43.92 hurdle, marked by the high of February 19th, 2020, where a temporary hold-up may occur. However, if the bulls continue to feel comfortable, they might drag the price further north, initially aiming for the 44.66 obstacle, and then for the 45.63 level, marked by the highest point of February of 2020.
The RSI is still pointing higher and continues to sit above 50. The MACD started pointing higher as well, as it continues to run well above zero, while resting fractionally below its trigger line. Both indicators seem to support the above-discussed scenario, as they show positive price momentum.
Alternatively, if the aforementioned upside line breaks and the price falls below the 39.79 hurdle, marked by the current lowest point of June, that may attract more sellers into the arena, as such a move would confirm a forthcoming lower low. EWZ could then slide to the 38.31 zone, which if fails to provide support and breaks, might open the way towards the 36.55 level. That level marks the low of May 13th.
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