USD/MXN drops further near 20.70, fresh monthly low

USD/MXN keeps falling even as Wall Street extends slide.
Mexican peso among top weekly performers.
Banxico surprises with an interest rate hike of 50bps.

Matías Salord FXStreet

The USD/MXN is falling for the third day in a row and not even risk aversion is avoiding the Mexican peso to add to weekly gains. The cross trades at 20.71, the lowest level in a month.

The Mexican peso is among the top performers of the week. It was already strong and Banxico’s decision on Thursday to raise the key interest rate by 50 bps, above the 25 bp increase of market consensus, boosted MXN even further.

Also, technical factors contribute to the decline. USD/MXN broke the strong support area around 20.90 and now it looks poised to test the 20.65 area. Below the next support might be seen at 20.45/50 followed by a key long-term trendline around 20.15.

On Friday, the Dow Jones is falling 1.65% and the Nasdaq 1%. The slide in equity prices, neither the Turkish lira crisis, is affecting so far the Mexican peso that together with the South African rand are the biggest gainers.

USD/MXN weekly chart

USD/MXN

Overview
Today last price	20.7214
Today Daily Change	-0.0752
Today Daily Change %	-0.36
Today daily open	20.7966

Trends
Daily SMA20	21.2119
Daily SMA50	20.7868
Daily SMA100	20.4478
Daily SMA200	20.2709

Levels
Previous Daily High	21.0915
Previous Daily Low	20.7616
Previous Weekly High	21.3825
Previous Weekly Low	20.8417
Previous Monthly High	22.1557
Previous Monthly Low	20.2514
Daily Fibonacci 38.2%	20.8876
Daily Fibonacci 61.8%	20.9655
Daily Pivot Point S1	20.675
Daily Pivot Point S2	20.5534
Daily Pivot Point S3	20.3451
Daily Pivot Point R1	21.0049
Daily Pivot Point R2	21.2131
Daily Pivot Point R3	21.3348

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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