• USD/MXN trades at 17.0741, down 0.19%, as the pair slides below the 20-day Moving Average, targeting the psychological 17.0000 level.
  • Mixed US data, including a drop in inflation expectations, leaves investors uncertain about further Fed tightening beyond September.
  • Technical outlook suggests downside risks below the 50-DMA at 17.0079 while reclaiming the 100-DMA at 17.2271 could spur a recovery.

The Mexican Peso (MXN) extends its gains versus the US Dollar (USD), and prolongs its rally to five consecutive days, with USD/MXN bears setting their sight on the 17.0000 psychological level after sliding below the 20-day Moving Average (DMA) at 17.0921. The pair exchanges hands at 17.0741, down 0.19%.

USD/MXN slips further as mixed US data fails to lift the Greenback, while traders eye a packed economic calendar in Mexico next week

Data from the United States (US) so far failed to bolster the Greenback (USD) as inflation expectations dropped the most in two years, as revealed by the University of Michigan (UoM) Consumer Sentiment poll. Inflation is expected to climb at a 3.1% pace, down from August 3.5%, and estimate a 2.7% jump over a 10-year period. Despite America’s optimism on inflation, sentiment fell to 677 below estimates of 69.1, blamed on high food and energy prices.

Before Wall Street opened, Industrial Production in August rose by 0.4% MoM, below July’s 1% increase but above the 0.1% estimated by the consensus, as the US Federal Reserve revealed. That depicts consumers taking a breather as retailers posted limited orders on manufacturers, struggling with higher borrowing costs and uncertainty on demand.

At the same time, the New York Fed revealed its Manufacturing Index, which expanded this month from -21 to 1.9, exceeding forecasts of -10. Given the amount of data posting positive surprises about the US economy, investors remain hesitant that the US Federal Reserve would continue to tighten monetary policy past the September meeting.

Across the border, a scarce economic docket left USD/MXN traders adrift to market sentiment and US Dollar dynamics. Nevertheless, next week’s agenda will be busy, with the release of Private Spending, Aggregate Demand, Retail Sales, Economic Activity, and inflation for the first half of September.

USD/MXN Price Analysis: Technical outlook

The USD/MXN remains neutrally biased despite printing a new multi-month high. After reaching 17.7074, the pair’s pullback could offer buyers a better entry price than last week’s close. However, downside risks remain and emerge slightly below the 50-DMA at 17.0079. Once cleared, a test of the August 28 swing low of 16.6923 is on the cards. On the other hand, if buyers reclaim the 100-DMA at 17.2271, that would exacerbate a recovery towards September’s high of 17.7074.

USD/MXN

Overview
Today last price 17.0887
Today Daily Change -0.0215
Today Daily Change % -0.13
Today daily open 17.1102
 
Trends
Daily SMA20 17.0975
Daily SMA50 17.0163
Daily SMA100 17.2425
Daily SMA200 17.9696
 
Levels
Previous Daily High 17.209
Previous Daily Low 17.0734
Previous Weekly High 17.7094
Previous Weekly Low 17.0447
Previous Monthly High 17.4274
Previous Monthly Low 16.6945
Daily Fibonacci 38.2% 17.1252
Daily Fibonacci 61.8% 17.1572
Daily Pivot Point S1 17.0527
Daily Pivot Point S2 16.9952
Daily Pivot Point S3 16.9171
Daily Pivot Point R1 17.1883
Daily Pivot Point R2 17.2664
Daily Pivot Point R3 17.3239

 

 

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