- Emerging market currencies hold onto gains despite a reversal in Wall Street.
- USD/MXN bearish momentum eases during the American session, still heads for the lowest close since late March.
The USD/MXN broke below 23.05 earlier on Thursday and tumbled to 22.74, reaching the lowest level since March 17. Over the last hours, it trimmed losses, and it is trading around 23.00, down for the day but off lows.
The decline was triggered by a rally of emerging market currencies versus the greenback on the back of risk appetite. Recently equity prices in Wall Street turned to the downside against, and the momentum in the mentioned currencies eased, favouring the rebound in USD/MXN back to 23.00. Despite the recovery of the greenback, USD/ZAR is falling 1.65% and USD/BRL 1.55%. The Mexican peso comes next with USD/MXN down 0.89%.
Economic data from the US showed an improvement in May compared April but still showing a hard recession. Initial claims dropped, however, remained above two million while the Markit PMI Composite recovered to in May 36.9 from 26.7 in April (above expectations), but still well under the 50 level. Market participants mostly ignored the numbers.
The USD/MXN was unable to consolidate below 22.80 and rebounded to the 23.00, as a normal correction. On the upside, the resistance is seen at 23.05 followed by 23.25/30. The bias will continue to point to the downside as long as the pair remains under 24.10.
On the downside, below 22.80 the next support is located around 22.45 followed by 22.10.
|Today last price||22.9756|
|Today Daily Change||-0.2201|
|Today Daily Change %||-0.95|
|Today daily open||23.1957|
|Previous Daily High||23.7563|
|Previous Daily Low||23.0532|
|Previous Weekly High||24.4133|
|Previous Weekly Low||23.5513|
|Previous Monthly High||25.7809|
|Previous Monthly Low||23.2825|
|Daily Fibonacci 38.2%||23.3218|
|Daily Fibonacci 61.8%||23.4877|
|Daily Pivot Point S1||22.9138|
|Daily Pivot Point S2||22.6319|
|Daily Pivot Point S3||22.2106|
|Daily Pivot Point R1||23.617|
|Daily Pivot Point R2||24.0382|
|Daily Pivot Point R3||24.3201|
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.