- USD/MXN corrects modestly higher, bearish outlook intact.
- Quiet day, for the moment, in the financial markets after the holiday.
USD/MXN is rising on Tuesday and is trading at daily highs at 18.82, before the start of the American session. It is the second straight daily rise, coming after the pair posted its lowest daily close in nearly three years.
The dominant trend remains bearish for USD/MXN and the increases for the moment are seen as normal corrections. In case of extension, resistance is seen at 18.90 and then at 19.00/05. Going the other way, the pair needs to firm below 18.70 to enable a further decline. The next strong support is seen at 18.50.
The dollar is trading flat on Tuesday, validating recent sharp falls. Wall Street points to a negative open after the holiday on Monday, which does not help emerging market currencies. Part of the support for the greenback comes from the rise in Treasury yields, after last week’s bond rally.
In the US the Empire manufacturing index will be published. Wednesday will be the day of the industrial production and retail sales report.
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.
