- The dollar rises in the market after days with strong falls.
- USD/MXN bounces from levels close to 18.70, maintains a downward trend.
- Wall Street futures in red, US holiday
USD/MXN is rising on Monday snapping a losing streak of four straight days with losses. The pair’s advance comes after setting new lows in almost three years at 18.72. The price recently returned to 18.80 and reached 18.86, due to a general recovery of the dollar.
The advance of the dollar in the market on Monday is being moderate and represents a correction after the sharp falls of last week. The greenback remains vulnerable to the expectation that the Federal Reserve will soften the pace of interest rate hikes.
Market activity on Monday is affected by the Wall Street holiday, for the day of Martin Luther King Jr. US stock index futures are trading negative. The deterioration in the mood of the markets plus the correction of the dollar play against the currencies of emerging markets.
The USD/MXN is having the most important daily rise since December 27. The trend remains bearish despite the rise and is being guided by the general weakness of the dollar. So far this year, the pair has fallen 3.40%, one of the lowest, surpassed (among the most traded) only by USD/BRL (-3.90%) and USD/THB (-5.10%), .
At this time, the USD/MXN is trying to stabilize and recover some of the lost ground. Should the bullish correction extend, next resistance is seen at 18.90, followed by the 19.00 area.
In the opposite direction, the 18.75 area looks like the first support to consider. A confirmation below 18.70 will leave the doors open for a bearish extension heading towards 18.50where the 2020 minimums are.
technical levels
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.
