USD/MXN rebounds toward 23.00 after hitting two-month lows near 22.70


  • 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.

Technical outlook

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.

 

USD/MXN

Overview
Today last price 22.9756
Today Daily Change -0.2201
Today Daily Change % -0.95
Today daily open 23.1957
 
Trends
Daily SMA20 24.12
Daily SMA50 23.9481
Daily SMA100 21.4888
Daily SMA200 20.4403
 
Levels
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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD jumps back above 0.6950 as risk-on mood dominates

Following a bearish opening gap, AUD/USD has recovered ground and trades above 0.6950, tracking the bounce in the S&P 500 futures. The bulls shrug off US-China tensions and the worsening coronavirus situation in the US and Australia. 

AUD/USD News

USD/JPY bears holding their positions below 107 level

Yen remains a safe haven currency of choice as trade wars and the coronavirus play havoc risk apatite. Investors pin hopes on Gilead Sciences reporting that its antiviral drug Remdesivir recorded positive results in clinical trials.

USD/JPY News

Gold: Pierces $1,800 inside short-term bullish flag

Gold prices extend recoveries from $1,798.14, defies two-day losing streak. A seven-day-old bullish technical pattern, sustained trading beyond immediate support favor the buyers. 200-HMA offers additional downside support, bulls will cheer break of $1,811.60.

Gold News

WTI: Depressed above $40 amid output cut talks

WTI defies the late-Friday recovery moves while slipping from $40.80. Saudi Arabia pushes for two million barrels a day output cut, IEA improves on oil demand forecast. Risk-tone remains mildly positive amid virus woes, US-China tension.

Oil News

S&P 500: Bank's earnings in focus, COVID-19 induced insolvency fears simmer away

The S&P 500 will be a key theme on Q2 earnings this week, traders watching the banks for guidance. Wall Street stocks remain in bullish territory, but the S&P 500 is on thin-ice while below the June highs. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures