USD/MXN accelerates slide to 5-day lows and tests 19.00

Mexican peso rises sharply against US Dollar despite lower crude oil prices.
USD/MXN ends bullish correction, back under pressure.

Matías Salord FXStreet

The USD/MXN pair reached yesterday the highest level in 12 days but then moved off highs offering the first signal about potential exhaustion of the US Dollar’s correction. Since the beginning of Wednesday, the pair has been moving with a bearish bias. During the US session, the pair accelerated the decline and dropped to 19.01, hitting the lowest level in five days.

Near the end of the day, it is trading slightly above 19.00, holding a strong bearish tone A consolidation around current levels would expose the next support at 18.90. Under that level, a test of monthly lows around 18.85 is expected. To the upside, the greenback needs to rise back above 19.15 in order to remove the negative momentum.

The move lower in USD/MXN took place despite the slide in crude oil prices and lower equity prices. The WTI falls 1.45% while US major indexes are down on concerns about the global outlook. Among currencies, the best performer so far is the Brazilian real boosted by comments from Economy minister Guedes regarding hist privatization and pension plan.

In Venezuela, opposition leader Juan Guaido swore himself as interim president. US President Trump recognized him as the official president. Also, Trump told Speaker Nancy Pelosi he plans to deliver his State of the Union address in Congress on January 29, despite the government shutdown.

USD/MXN

Overview:
    Today Last Price: 19.0404
    Today Daily change %: -0.80%
    Today Daily Open: 19.1946
Trends:
    Daily SMA20: 19.3364
    Daily SMA50: 19.8851
    Daily SMA100: 19.5852
    Daily SMA200: 19.4546
Levels:
    Previous Daily High: 19.2421
    Previous Daily Low: 19.101
    Previous Weekly High: 19.206
    Previous Weekly Low: 18.8767
    Previous Monthly High: 20.658
    Previous Monthly Low: 19.607
    Daily Fibonacci 38.2%: 19.1882
    Daily Fibonacci 61.8%: 19.1549
    Daily Pivot Point S1: 19.1164
    Daily Pivot Point S2: 19.0381
    Daily Pivot Point S3: 18.9753
    Daily Pivot Point R1: 19.2575
    Daily Pivot Point R2: 19.3204
    Daily Pivot Point R3: 19.3986

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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