USD/MXN holds bullish tone, near 19.30

  • Mexican peso recovers modestly against the US dollar; technicals still show it vulnerable. 
  • A decline across the board of the greenback and higher crude oil prices kept USD/MXN below 19.30. 

The USD/MXN broke yesterday a multi-day range above 19.15 and jumped to 19.32, reaching the highest level in a month. Today pulled back to 19.20 and rebounded back above 19.25. As of writing trades at 19.26, marginally lower for the day and close to the 19.30 zone. 

The improvement in the tone around financial markets helped the Mexican peso. “There is a positive tone on the financial markets after the announcement from US lawmakers of a potential deal that includes some funding for the border. This has somewhat allayed fears over another partial government shutdown ahead of this Friday’s deadline. Moreover, there is a positive sentiment on the US-China trade relationship ahead of the resumption of high-level talks later in the week. On another front, Brexit negotiations continued to be uncertain”, said BBVA analysts. US President Trump just said he was “not happy” with the border security deal but so far, did not mention whether he would veto it. 

BBVA analysts added that “Latam countries benefited the most from the rise in crude oil prices (reaching levels above $62 per barrel) due to reports showing a potential additional cut in crude oil production by Saudi Arabia”. The Brazilian real is so far the best performer. The WTI barrel is up 2.05% at $53.50. 

USD/MXN Levels to watch 

After breaking yesterday the key 19.20 and after completing a pullback to that level today, the USD/MXN appears to be ready for a test of 19.30. A close above 19.30 would point to further gains, targeting 19.45. 

The bias points to the upside but a slide significantly back below 19.20 would weaken the US dollar and could lead to a test of 19.00. The key support below is the 18.85/87 zone (January lows). 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Weakest daily close since June 2017, focus on US durable goods

EUR/USD looks south toward 1.10, having bolstered the already bearish technical setup with a close below 1.1176 yesterday. The pair took a beating yesterday, courtesy of the broad-based US dollar demand. 

EUR/USD News

GBP/USD regains 1.2900 handle on Brexit headlines

The GBP/USD pair regains its stand above 1.2900 while heading into the London open on Thursday. Absence of immediate challenge to PM May’s position and a likely Brexit deal voting helps the GBP.

GBP/USD News

USD/JPY keeps range around 112.00 post-BOJ

USD/JPY has barely moved in response to BOJ’s decision to keep key policy tools unchanged. The downward revision of the growth and inflation forecasts could push the JPY lower during the day ahead. 

USD/JPY News

US Durable Goods Preview: Where the consumer leads

Durable goods orders are expected to rise 0.8% in March having fallen 1.6% in February. Orders excluding the transportation sector are predicted to gain 0.2%.

Read more

Gold: Bullish divergence on the momentum indicators

Technically, bears can look to break below 200-DMA around the confluence of 1249/50% Fibo area. There is bullish divergence on the momentum indicators such as RSI and stochastics.

Gold News

majors

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •