USD/MXN tumbles and hits six-weeks lows below 21.00
- Mexican peso among the top performs during the American session.
- USD/MXN breaks key support ending day of consolidation.
The USD/MXN opened the day extending Friday’s slide and it was able to make a clear break under 22.20, a critical support. It tumbled to 21.96, reaching the lowest level since June 16.
As of writing, the pair is hovering around slightly below 22.00, with the negative momentum intact. On the downside, the next support is seen around 21.90, followed by the June low at 21.45.
A weaker US dollar was the key driver in USD/MXN decline. The greenback remains under pressure across the board while the Mexican peso, supported by technical factors, outperform during the American session.
Market participants ignored economic data from the US. The US Dollar Index (DXY) is falling 0.85%, trading at 93.64, the lowest since June 2018. The greenback is falling, even as Wall Street equity prices show no significant changes. Crude oil prices are also flat.
Technical levels
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.
