USD/MXN extends slide below 19.50, to lowest in two weeks

Mexican Peso accelerates the upside versus US Dollar after breaking key technical level.
US data in line with expectations, Mexican activity stagnates in October.

Matías Salord FXStreet

The USD/MXN broke under 19.50 and quickly fell further hitting 19.40, for the first time since December 5. The pair remains near the low, under pressure as the US Dollar posts mixed results on Friday.

Economic data from the US showed the Core Personal Consumption Expenditure Price Index rose 0.2% in November, in line with expectations. A different report showed Durable Goods Orders dropped 2.1%, against expectation of a 0.6% slide. The numbers did not have a significant influence on the US Dollar.

In Mexico, the Economic Activity index stagnated in October, against expectations of a 0.3% increase. Compared to a year earlier, the index rose 4.40%. On Thursday, inflation that came in mixed with the headline index rising after six consecutive drops (from 7.46% to 7.77%), while the core rate slowed down (8.37% to 8.35%).

Levels to watch

The consolidation below 19.70 left the USD/MXN vulnerable to more losses. Recently it broke the 19.50 support area falling to as low as 19.40. The bearish bias prevails with the next relevant support at 19.30. A recovery back above 19.50 would alleviate the pressure. The next resistance stands at 19.60, with a recovery above adding strength to the US Dollar.

USD/MXN daily chart

USD/MXN

Overview
Today last price	19.4285
Today Daily Change	-0.1330
Today Daily Change %	-0.68
Today daily open	19.5615

Trends
Daily SMA20	19.581
Daily SMA50	19.6317
Daily SMA100	19.8418
Daily SMA200	20.0025

Levels
Previous Daily High	19.682
Previous Daily Low	19.5423
Previous Weekly High	19.9181
Previous Weekly Low	19.5169
Previous Monthly High	19.8281
Previous Monthly Low	19.0402
Daily Fibonacci 38.2%	19.5957
Daily Fibonacci 61.8%	19.6286
Daily Pivot Point S1	19.5085
Daily Pivot Point S2	19.4556
Daily Pivot Point S3	19.3689
Daily Pivot Point R1	19.6482
Daily Pivot Point R2	19.735
Daily Pivot Point R3	19.7879

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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