USD/MXN heads for lowest close since August 2018

Mexican peso rises again versus US dollar on global risk appetite.
USD/MXN break January lows, vulnerable to more losses.

Matías Salord FXStreet

The USD/MXN pair is falling on Wednesday for the third day in a row and it broke below January lows to 18.56, hitting the lowest intraday level since October 2019. The Mexican peso remains supported by the improvement in risk sentiment. In Wall Street, the Dow Jones is up 1.36% and the Nasdaq gains 0.24%.

US economic data came in better-than-expected on Wednesday and offered support to the greenback against majors but not versus commodity and emerging market currencies. In a few hours, the US Senate will vote on Trump’s impeachment.

The DXY is up 0.27%, trading at 98.25, the highest level since early December. Also US yields are higher. The worst performers are safe-haven assets like the yen and the Swiss franc.

Levels to watch

The USD/MXN is trading around 18.60, about to post the lowest close since August 2018. A consolidation below 18.65, leaves the door open to more losses. Support levels are seen at 18.55, 18.49 (October 2018 low) and 18.40.

The break below 18.65 reaffirms the bear trend. Immediately the greenback needs to rise back above 18.65 to remove the short-term bearish pressure; above the next resistance comes at 18.75. While below 19.00, the pair seems vulnerable to the downside.

USD/MXN

Overview
Today last price	18.6223
Today Daily Change	-0.0565
Today Daily Change %	-0.30
Today daily open	18.6788

Trends
Daily SMA20	18.7765
Daily SMA50	18.977
Daily SMA100	19.1632
Daily SMA200	19.2414

Levels
Previous Daily High	18.8515
Previous Daily Low	18.6571
Previous Weekly High	18.9767
Previous Weekly Low	18.668
Previous Monthly High	19.0278
Previous Monthly Low	18.6407
Daily Fibonacci 38.2%	18.7314
Daily Fibonacci 61.8%	18.7772
Daily Pivot Point S1	18.6068
Daily Pivot Point S2	18.5347
Daily Pivot Point S3	18.4124
Daily Pivot Point R1	18.8012
Daily Pivot Point R2	18.9235
Daily Pivot Point R3	18.9956

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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