USD/MXN Price Analysis: Mexican Peso prints longest daily winning run in six weeks

USD/MXN fell for a third straight day on Thursday, confirming Peso's longest daily winning run since mid-February.
Technical studies suggest scope for further gains in the recently battered Peso.

Omkar Godbole FXStreet Contributor

Mexico's Peso jumped 4% against the US dollar on Thursday, having gained 2% and 3.69% on Tuesday and Wednesday, respectively. The three-day winning streak is the longest since Feb. 14

The sharp pullback in USD/MXN from the record high of 25.4590 registered on Tuesday to a low of 22.8617 seen early Friday has put the bears back into the driver's seat.

The 14-day relative strength index has rolled over from the overbought or above-70 territory, signaling scope for a deeper pullback and the 5- and 10-day averages look set to produce a bearish crossover. The MACD histogram, which is used to identify trend strength and trend changes, is about to cross below zero in favor of the bears.

As a result, a drop to 22.00 cannot be ruled out. For outlook to turn bullish, the spot needs to end Friday above Thursday's high of 22.2484. The resulting bullish engulfing candle will likely allow a re-test of recent highs.

The Mexican Peso fell from 18.55 to 25.4590 in the four weeks to March 24 as the coronavirus pandemic triggered recession fears and the Saudi-Russia oil price war fueled a sharp drop in the black gold, which is Mexico's key export.

Daily chart

Trend: Bearish

Technical levels

USD/MXN

Overview
Today last price	23.2526
Today Daily Change	0.3048
Today Daily Change %	1.33
Today daily open	22.9478

Trends
Daily SMA20	21.9962
Daily SMA50	20.0645
Daily SMA100	19.5951
Daily SMA200	19.4886

Levels
Previous Daily High	24.2484
Previous Daily Low	22.943
Previous Weekly High	24.6528
Previous Weekly Low	21.3655
Previous Monthly High	19.895
Previous Monthly Low	18.5151
Daily Fibonacci 38.2%	23.4417
Daily Fibonacci 61.8%	23.7498
Daily Pivot Point S1	22.5111
Daily Pivot Point S2	22.0744
Daily Pivot Point S3	21.2057
Daily Pivot Point R1	23.8165
Daily Pivot Point R2	24.6852
Daily Pivot Point R3	25.1219

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.