USD/MXN tests levels on top of 19.20 amid a stronger US Dollar; MXN topped out?


  • Mexican peso offers signals of exhaustion and retreats, the short-term range is being challenged. 
  • Stronger US Dollar and technicals pushed USD/MXN to the 19.20 zone. 

The Mexican peso approached weekly highs but changed its course and weakened signaling that the “no tariffs rally” might be over. The USD/MXN broke above 19.20 late on Wednesday and as of writing trades at 19.21, approaching Tuesday’s top. 

With the fear of tariffs behind, attention could turn to domestic factors in Mexico that could weight on MXN. Industrial production data for April in Mexica helped offset the current negative growth outlook after GDP contracted during the first quarter. Also, several rating downgrades last week damaged economic confidence. The agreement with the US helped confidence but it didn’t completely remove fears. 

Levels to watch 

The daily chart shows the pair holding below the 20-day moving average and still with a modest bearish bias. At the moment, USD/MXN is testing the upper limited of the current consolidation range between 19.10 and 19.20. The stabilization followed the dramatic decline after the announcement of the suspension of tariffs to Mexican imports. 

In the short-term, a firm move above 19.20 would point to more gains for the US Dollar and a potential test of 19.30, a key resistance level that if broken should clear the way to 19.50. On the flip side, a close under 19.10 is MXN positive and could lead to a test of 19.00 that protects the critical support of 18.90. 

USD/MXN

Overview
Today last price 19.2212
Today Daily Change 0.0901
Today Daily Change % 0.47
Today daily open 19.1311
 
Trends
Daily SMA20 19.261
Daily SMA50 19.0933
Daily SMA100 19.1409
Daily SMA200 19.3631
Levels
Previous Daily High 19.2437
Previous Daily Low 19.087
Previous Weekly High 19.8799
Previous Weekly Low 19.4667
Previous Monthly High 19.8284
Previous Monthly Low 18.7907
Daily Fibonacci 38.2% 19.1468
Daily Fibonacci 61.8% 19.1838
Daily Pivot Point S1 19.0641
Daily Pivot Point S2 18.9972
Daily Pivot Point S3 18.9074
Daily Pivot Point R1 19.2209
Daily Pivot Point R2 19.3107
Daily Pivot Point R3 19.3776

 

 

 


 

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