USD/MXN extends correction from one-month highs, falls under 19.70

US Dollar drops versus Emerging market currencies after another negative US economic report.
USD/MXN accelerates to the downside, erases weekly gains.

Matías Salord FXStreet

The USD/MXN turned negative for the week after falling sharply on Thursday, extending the correction from one-month highs and dropped below 19.70.

Weaker USD drivers pair lower

The Greenback again was hit by lower than expected US economic data. The ISM non-manufacturing index dropped from 56.4 to 52.6, below the 55.0 expected. It was another report that pointed to a slowdown in the US, increasing market expectations of more rate cuts from the Federal Reserve.

Today, the decline of the US Dollar offset risk aversion pushing USD/MXN to the downside. The pair continues to correct lower after reaching yesterday a one-month high above 19.80. Recently the pair printed a fresh weekly low at 19.66.

If the correction continues the next support might be seen at 19.62 (20-day moving average) followed by 19.50. On the upside, now 19.75 has become the immediate resistance followed by 19.85. A break above the last one would open the doors for a test of 20.00.

USD/MXN

Overview
Today last price	19.6691
Today Daily Change	-0.1252
Today Daily Change %	-0.63
Today daily open	19.7943

Trends
Daily SMA20	19.5508
Daily SMA50	19.5919
Daily SMA100	19.3758
Daily SMA200	19.2616

Levels
Previous Daily High	19.8623
Previous Daily Low	19.7453
Previous Weekly High	19.7364
Previous Weekly Low	19.3782
Previous Monthly High	20.1651
Previous Monthly Low	19.3208
Daily Fibonacci 38.2%	19.79
Daily Fibonacci 61.8%	19.8176
Daily Pivot Point S1	19.739
Daily Pivot Point S2	19.6836
Daily Pivot Point S3	19.622
Daily Pivot Point R1	19.856
Daily Pivot Point R2	19.9176
Daily Pivot Point R3	19.973

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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