USD/MXN: Mexican Peso rallies 1% on politics

Mexican Peso cheers Meade’s defeat, rallies 1%.
Will USD/MXN crack the 19.50 support amid broad-based US strength?

Dhwani Mehta FXStreet

After Friday’s temporary reversal, the USD/MXN pair resumed its bearish momentum in Asia this Monday, as the Mexican Peso rallied hard after Mexico's ruling party Meade conceded defeat in the presidential election.

Also, the exit polls showed the leftist outsider Andres Manuel Lopez Obrador winning the election, added to the upside in the Mexican currency. One exit poll by Parametria showed Lopez Obrador ahead by 20 percentage points.

The peso went on to test the 4-week lows of 19.5665 reached versus its American rival last Friday, before paring back gains to now trade around 19.75 levels.

On the USD-side of the equation, the US growth story combined with the ongoing trade war tensions continue to favor the US dollar, which in a way appears to cushion the losses in the spot.

USD/MXN Technical Levels

Resistances: 19.89/96 (5 & 10-DMA), 20.27 (20-DMA). 20.50 (psychological levels).

Supports: 19.5665 (4-week lows), 19.30 (May-mid lows), 19.08/00 (200-DMA/ round number).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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