USD/MXN retreats after reaching 5-month highs

Matías Salord FXStreet

USD/MXN printed a fresh 5-month high at 19.15 before pulling back under 19.00. The pair is now down for the day as it trades at 18.95 but the Mexican peso still remains under pressure across the board.

During the last month, the peso is the worst performer among emerging market currencies. Concerns about the outcome of the negotiations of the North American Free Trade Agreement weigh on the Mexican peso. It dropped sharply during the fourth round of talks. Investors are worried about a potential break-up of the NAFTA.

Technical outlook

USD/MXN has been rising constantly since September 25, gaining 7.05%. Yesterday it posted the highest close in five months and traded above 19.00 for the first time since May 18.

Despite the retreat of the last hours, Momentum remains bullish although many indicators are at extreme overbought levels. The area around 19.00 should be a strong resistance. If the pair holds on top, an extension of the rally seems likely. Potential targets above are seen at 19.15, 19.30 and 19.40.

The immediate support could be seen at 18.90 (weekly low), followed by 18.85 and 18.67 (Oct 12 low). Below 18.85 the US dollar could lose strength, favoring some consolidation, but the overall bias will continue to point to the upside.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.