• Mexican peso under pressure amid global risk aversion due to new COVID variant.
  • The retreat in USD/MXN found support above 21.65, now is approaching 22.00.

The USD/MXN is rising 1.50% on Friday, adding to weekly gains. It peaked during the Asian session at 22.15, the highest level since September 2020 and then pulled back finding support at 21.65. As of writing it is hovering around 21.90 as the market’s sell-off continues.

The concerns triggered by the new COVID-19 variant hits market sentiment. Equity markets tumbled in Europe and in the US, the Dow Jones is falling by 2.70% and the Nasdaq by 1.95%.

Emerging market currencies are falling sharply. The worst performers are the Turkish lira (USD/TRY +4.45%), the South African rand (USD/ZAR + 1.75%) and the Mexican peso.

The USD/MXN was already sharply higher for the week, not only boosted by global developments but also by domestic factors. The change in the nomination for the next head of the Bank of Mexico sent the Mexican peso lower earlier on the week.

The US dollar is up by almost 5% over the last five days versus the Mexican peso; the biggest rally since September of last year. It is about to post the highest close in more than a year. The rally could go on if market conditions remain negative.

Technical levels

USD/MXN

Overview
Today last price 21.9003
Today Daily Change 0.3361
Today Daily Change % 1.56
Today daily open 21.5642
 
Trends
Daily SMA20 20.7466
Daily SMA50 20.5187
Daily SMA100 20.2644
Daily SMA200 20.2441
 
Levels
Previous Daily High 21.5988
Previous Daily Low 21.3614
Previous Weekly High 20.89
Previous Weekly Low 20.4702
Previous Monthly High 20.9034
Previous Monthly Low 20.1193
Daily Fibonacci 38.2% 21.5081
Daily Fibonacci 61.8% 21.4521
Daily Pivot Point S1 21.4175
Daily Pivot Point S2 21.2708
Daily Pivot Point S3 21.1802
Daily Pivot Point R1 21.6548
Daily Pivot Point R2 21.7454
Daily Pivot Point R3 21.8921

 

 

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