A new week saw a familiar tale as the market meltdown due to coronavirus continues unabated. Weaker macro encouraged opening selling which sent May20 quickly down to 11.42, and in truth it never looked likely to mount a recovery as the price proceeded to gradually erode towards 11c. It reached the psychological 11c mark during the early afternoon with the ongoing negative sentiment now aided by the USDBRL which was weakening and pushing towards 5.00 once again. Having found support we nudged beneath 11c and triggered a few stops in printing down to 10.95, however with this target now achieved some short covering began to emerge which allowed prices to hold back above 11c for the remainder of the session. Final trades remained towards the lows and settlement level at 11.09 suggests that we will see further movement into the 10c handle moving forward.
