EM LATAM CREDIT: MercadoLibre: S&P Upgrade to Investment Grade - Positive

• The dollar snaps lower on the lower-than-expected CPI figures, with USDJPY down roughly 90 pips to reach a 144.33 low post the data.
• EURUSD extends its resilient profile through the Wednesday morning and is now narrowing the gap to last week’s 1.1495 post-ECB peak.
• Firmer equity benchmarks promote AUDUSD back towards the best levels of the cycle, registering a fresh high at 0.6546. The pair continues to pressure the late November highs, threatening a more protracted recovery towards the post US election highs aroun 0.6688.

• RES 4: 170.47 76.4% retracement of the Jul 11 - Aug 5 2024 bear leg 
• RES 3: 167.38 2.0% 10-dma envelope
• RES 2: 166.69 High Oct 31 2024 and a key resistance        
• RES 1: 166.29 Intraday high
• PRICE: 165.81 @ 13:44 BST Jun 11 
• SUP 1: 163.78 20-day EMA
• SUP 2: 162.95 50-day EMA 
• SUP 3: 161.78 Low May 26 
• SUP 4: 161.09 Low May 23 and key support   

The trend set-up in EURJPY remains bullish and the latest rally reinforces current conditions. The cross has breached key resistance at 165.21, the May 13 high, and traded to a fresh cycle high today. This confirms a resumption of the uptrend and opens 166.69 next, the Oct 31 2024 high and a key resistance. Key short-term support lies at 161.09, the May 23 low, where a break is required to highlight a stronger reversal. First support lies at 163.78, the 20-day EMA.

A 20 ticks jump in Bund following the Lower than expected US Inflation Data, the initial resistance is still at 131.00, so far only managed a 130.84 high on the bounce, and short of the earlier printed  high of 130.97.