- Mexican peso continues to rise versus the US dollar as markets recover.
- DXY extends bearish correction, and suffers the worst daily loss in months.
- The slide below 20.00, weakens further the USD/MXN pair.
The USD/MXN is falling on Tuesday for the sixth consecutive day. It bottomed at 19.92, the lowest level since April 19 and then rebounded toward 20.00.
The Mexican peso continues with its rally versus the US dollar for the sixth consecutive day. It reached the highest level in almost a month. The MXN has been among the top performers during the last five days, after a new rate hike from Banxico.
The improvement in risk appetite across financial markets seen during the last few days pushed USD/MXN further to the downside. Also weakened by higher crude oil and commodity prices. The US Dollar Index is falling for the third consecutive day, posting on Tuesday so far the worst decline in months. The greenback trimmed losses after the release of US economic data that came in above expectations.
April lows back on the radar
The consolidation below 20.00 could open the doors to a slide toward the next support area at 19.85 in USD/MXN. A slide below would expose the April low at 19.72. A weekly close clearly under 19.70 would strengthen the medium-term outlook for the Mexican peso.
If the dollar recovers above 20.00, it would alleviate the bearish pressure. Above the next resistance stands at 20.07, followed by 20.22. The critical resistance remains 20.45: a consolidation above would target the 20.70 zone.
USD/MXN daily chart
-637883997305387108.png)
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.