USD/MXN breaks above 22.20 to highest in almost a week as dollar recovers


  • Emerging market currencies under pressure amid risk aversion.
  • US dollar tuned positive at the end of the week, trimming recent losses.

The USD/MXN pair jumped during the American session amid a rally of the US dollar across the board. The greenback is trimming weekly losses on Friday, particularly versus emerging market currencies amid risk aversion.

The greenback was showing some signs of stabilization and gained momentum over the last hours, also boosted by a rebound in US yields. The USD/MXN broke the intermediate resistance seen at 22.20/25 and climbed to 22.29, reaching the highest level since Monday. It then pulled back, and it is hovering around 22.25.

From a level it had a week ago, the MXN is at the same level, far from the one-month high it hit on Wednesday. The positive momentum faded as equity prices in Wall Street pulled back and amid rising concerns about the global economic recovery.

Among emerging market currencies, the worst perform on Friday is the South African rand (USD/ZAR up 1.45%) followed by the Russian ruble (USD/RBL up 1.40%) and then comes the Mexican peso (USD/MXN +1.15%).

Watch 22.40/45

If USD/MXN keeps rising, it would face a critical resistance around 22.40/45. The mentioned area contains the 20 and 55-day moving averages but also a downtrend line. So a firm break above would likely negate the short-term bearish bias, suggesting more gains ahead.

On the flip side, if the pair holds below 22.40, the bearish bias will remain in place. Support levels are located at 22.20, 21.90 and then the strong 21.50 barrier.

Technical levels

 

USD/MXN

Overview
Today last price 22.2604
Today Daily Change 0.2293
Today Daily Change % 1.04
Today daily open 22.0311
 
Trends
Daily SMA20 22.3873
Daily SMA50 22.3654
Daily SMA100 23.1662
Daily SMA200 21.1526
 
Levels
Previous Daily High 22.2385
Previous Daily Low 21.9557
Previous Weekly High 22.7171
Previous Weekly Low 22.1864
Previous Monthly High 23.2298
Previous Monthly Low 21.4609
Daily Fibonacci 38.2% 22.1305
Daily Fibonacci 61.8% 22.0637
Daily Pivot Point S1 21.9117
Daily Pivot Point S2 21.7923
Daily Pivot Point S3 21.6289
Daily Pivot Point R1 22.1945
Daily Pivot Point R2 22.3579
Daily Pivot Point R3 22.4773

 

 

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