USD/MXN: Upside capped again, remain sideways above 19.00


  • Mexican peso ends week little change versus US dollar around 19.10.
  • Next week: Banxico meeting, Fed talk and US retail sales. 

The USD/MXN is hovering around 19.10, around the same level it had a week ago. The pair continues to move sideways, consolidating after the bearish run from above 20.00 toward a long term trendline, around 19.00. 

The improvement in risk sentiment helped limit the upside over the week in the USD/MXN while on the downside, a stronger US dollar amid higher US yields, added support. The tone around US/China trade talks and expectations regarding US monetary policy continue to be a relevant driver. The Mexican peso was unaffected by the current turmoil in several Latin American countries. 

Next week, several FOMC officials are scheduled to speak. Those speeches could have an impact on Fed rate expectations. Data to be released in the US includes the retail sales report. In Mexico, the critical event is the Board meeting of the central bank. Banxico is likely to cut rates again. If delivers a 25bps cut, the focus will be on the statement and the votes, looking at hints for the future. 

Technical outlook 

The USD/MXN continues to trade in a range, with a strong support around 19.00, a confluence of a horizontal level, recent lows and a long-term uptrend line. A consolidation below would likely clear the way for a test of the 2019 low at 18.74. 

On the upside, the key resistance lies at 19.20/25 that capped the upside over the last few days; also the 20-day moving average stands there. A daily close above 19.25 would strengthen the outlook of the US dollar. 

 

USD/MXN

Overview
Today last price 19.11
Today Daily Change -0.0231
Today Daily Change % -0.12
Today daily open 19.1331
 
Trends
Daily SMA20 19.163
Daily SMA50 19.4314
Daily SMA100 19.3821
Daily SMA200 19.264
 
Levels
Previous Daily High 19.2025
Previous Daily Low 19.0903
Previous Weekly High 19.246
Previous Weekly Low 19.0176
Previous Monthly High 19.8623
Previous Monthly Low 19.0176
Daily Fibonacci 38.2% 19.1332
Daily Fibonacci 61.8% 19.1596
Daily Pivot Point S1 19.0814
Daily Pivot Point S2 19.0298
Daily Pivot Point S3 18.9692
Daily Pivot Point R1 19.1936
Daily Pivot Point R2 19.2542
Daily Pivot Point R3 19.3058

 

 

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