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. 

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

 

 

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