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.



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



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