USD/MXN back below 22.50, Mexican peso rises sharply ending a five-day negative streak


  • Mexican peso outperforms in the currency market on Wednesday.
  • USD/MXN reverses from 22.90, trims weekly’s losses.

The USD/MXN is falling for the first time in more than a week, amid a weaker US dollar and as the Mexican peso outperforms. The pair dropped to 22.38, the lowest level since Monday, after hitting on Tuesday at 22.91, the highest level in a month.

The combination of technical factors, risk appetite across global financial markets and a weaker US Dollar pushed USD/MXN sharply to the downside. The Mexican peso is among the biggest gainers on Wednesday.

The DXY dropped to test the two-year low it reached last week near 92.50. The greenback is also falling versus commodity and emerging markets currencies as Wall Street prints gains. The Dow Jones rises 1.22% and the Nasdaq 0.35%.

Economic data from the US came in mixed but it was mostly ignored by market participants. The ADP report showed a lower than expected increase in private payroll (but a positive revision to June’s figures) while service sector indicators posted higher numbers than market consensus.

Technical outlook

The USD/MXN found resistance on Tuesday at the 22.90 area that capped the upside. The mentioned level continues to be critical and a close above would clear the way to more gains. Before that area, an intermediate resistance is now seen at 22.55.

The slide back under 22.50 alleviated the bullish pressure. On the downside, the next support is seen at 22.20/25. A close below would suggest the pair had peaked at 22.91 (Aug 3 high). But if USD/MXN rises back above 22.50, the bias will continue to point to the upside.

 

USD/MXN

Overview
Today last price 22.4127
Today Daily Change -0.2565
Today Daily Change % -1.13
Today daily open 22.6692
 
Trends
Daily SMA20 22.3873
Daily SMA50 22.3672
Daily SMA100 23.1646
Daily SMA200 21.204
 
Levels
Previous Daily High 22.9106
Previous Daily Low 22.5428
Previous Weekly High 22.3328
Previous Weekly Low 21.8473
Previous Monthly High 23.0953
Previous Monthly Low 21.8473
Daily Fibonacci 38.2% 22.7701
Daily Fibonacci 61.8% 22.6833
Daily Pivot Point S1 22.5045
Daily Pivot Point S2 22.3398
Daily Pivot Point S3 22.1368
Daily Pivot Point R1 22.8722
Daily Pivot Point R2 23.0753
Daily Pivot Point R3 23.24

 

 

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