- The USD/MXN operates in a range between 18.20 and 18.37.
- The price of the Dollar rebounds after falling to the vicinity of 106.00.
- Several relevant data from the US and Mexico could generate volatility in the pair during the week.
USD/MXN hit its highest price in more than two weeks at 18.46 on Friday, although it closed the week around 18.24. This Monday, the pair is trading between 18.20, which has become daily support, and 18.37, the new daily ceiling tested during the European session.
The price of the Dollar rebounds to a two-day low near the 106.00 zone
He Dollar Index (DXY) has fallen in the American pre-opening to 106.02, its lowest level since Thursday, October 19. Although it has recovered ground in the last hour, the greenback is trading above 106.15, flat on the day and somewhat away from the daily high at 106.33 reached at the beginning of the London session.
The mood of the markets is once again cautious in the face of the Israeli army’s threat to intensify aerial bombardments over the territory of Gaza, asking civilians to evacuate the north of the region.
The Dollar could move in the coming days with the publication of various data, among which the S&P Global services and manufacturing PMI advanced index for the month of October that will be released tomorrow, Tuesday, Jerome Powell’s speech on Wednesday, the preliminary annualized GDP for the third quarter that will be known on Thursday and the core PCE for September that will close the week on Friday.
For its part, Mexico will release inflation for the first half of October this Tuesday, the unemployment rate for September on Thursday and the trade balance figures for the same month on Friday.
USD/MXN Price Levels
With the USD/MXN currently trading above 18.25, gaining 0.07% daily, the first support is at 18.20, the floor of the day, prior to the psychological zone of 18.00. A break below this region could cause a decline towards 17.75, the weekly low of October 12. Further down awaits the October minimum recorded on the 3rd at 17.60.
To the upside, the zone located between 18.46/18.49 stands as the main resistance, as it contains the October highs recorded on October 20 and 6, respectively. Higher up I would expect the barrier located at the psychological level of 19.00.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
