USD/MXN cracks range base, risks a move toward 18.60/18.15 – Société Générale

FXStreet Insights Team FXStreet

USD/MXN has broken decisively below its multi-month range base near 19.85/20.00, confirming a rounding top and exposing the pair to deeper downside. Prices are now approaching a key support trend line near 19.00/18.90—failure to hold here risks acceleration toward 18.60 and even 18.15. A short-term bounce is possible but likely capped at 19.44, Société Générale's FX analysts note.

Key trend support near 19 in focus as USD/MXN extends slide

"USD/MXN formed a rounding top and breached the lower limit of its multi-month range (19.85/20.00) denoting potential downside. It has experienced a steady down move after this break and is now drifting towards an ascending trend line drawn snice April 2024 near 19.00/18.90, which could be an interim support."

"A short-term bounce can’t be ruled out but recent pivot high at 19.44 may cap upside. Inability to defend 19/18.90 can lead to persistence in decline towards projections of 18.60 and 18.15."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.