USD/MXN trims losses after hitting fresh monthly lows under 19.00
|- Mexican peso rises again across the board as the rally still goes on.
- USD/MXN about to end the day lower but far from the lows ¿consolidation ahead?
The USD/MXN rebounded during the last hours after the US dollar managed to stabilize across the board. Earlier it dropped to 18.75, the lowest level since May 1. From June’s high to July’s bottom, the pair lost 10%. During the last hours USD/MXN, bounced to the upside and climbed above 18.90. It was hovering around 18.92, down 0.75% for the day.
The Mexican peso continues to receive support as president-elect Andrés Manuel López Obrador announces his government plans, so far without creating uncertainty. On Thursday it also gained momentum amid a decline of the US dollar particularly against EM currencies.
A new low, but....
USD/MXN hit a new monthly low today and even ended lower. The correction from the low pushed the pair back above 18.80, a strong resistance. The rebound could point to some consolidation ahead that could take place with USD/MXN moving between 19.15/20 and 18.75/80.
If the pair consolidates below 18.75, it would open the doors to more losses. Support levels could be seen at 18.70 and 18.60. On the upside, a key resistance is the 19.15 zone that also contains the 100-day moving average. A break higher would remove the bearish momentum and could lead to a test of 19.45/50.
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