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USDBRL Closes In On Key Support, Local Holiday Thursday

BRAZIL
  • The USDBRL price pattern on May 31 is a shooting star candle - a bearish reversal signal, which signalled that the recent corrective cycle was over, paving the way for weakness to 4.8859, the May 15 low which has largely played out.
    • Given this is a key support level, attention will be on the currency in coming sessions. Below here, the most notable support level comes in at 4.6910, the May 2022 lows. It is worth noting that Brazil local markets will be closed Thursday for a holiday.
  • Lawmaker Aguinaldo Ribeiro, rapporteur of the tax reform bill in the Lower House, said Tuesday that constitutional amendment will go to the House’s floor in the first week of July. He added that “under no circumstances will there be an increase in the tax burden” and income taxation will only be discussed in the second semester. (BBG)

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