USD/MXN erases gains and tests May lows near 19.85

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  • The Mexican peso recovers after the fall on Wednesday.
  • USD/MXN remains bearish despite the negative climate in financial markets.

USD/MXN is trading around 19.90, erasing Wednesday’s rally. The Mexican peso returned to the area of ​​monthly highs, despite the negative climate of the financial markets.

On Thursday Wall Street is trying to recover after having the worst day since June 2020. The bad moment in the markets took the USD/MXN on Wednesday to rise from 19.86, the low in almost a month, to rise to 20.07. Today he is giving back those gains and recently tested the recent flat.

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The bearish technical picture remains, with the technical indicators still pointing lower, but with less strength than previous sessions. USD/MXN needs to break below 19.85 to enable further downside, and expose the April low near 19.70.

On the upside, resistance looms around 20.05, followed by 20.23, where the 20-day moving average is.. In the event of a close above 20.25, the Mexican peso would lose momentum.

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The risk for the Mexican peso comes from the current climate in the financial markets. If the declines and volatility persist, the MXN’s upward path will encounter more risks and the possibility of strong setbacks.

On Thursday the declines in the USD/MXN are behind some weakness in the dollar, as Treasury yields decline favoring a DXY correction from year-highs. Emerging currencies and markets have not been hit so badly so far, due to declines in the main Wall Street indices.

Technical levels


Today last price 19.9531
Today Daily Change 0.0113
Today Daily Change % 0.06
Today daily open 19.9418
Daily SMA20 20.2448
Daily SMA50 20.2222
Daily SMA100 20.3803
Daily SMA200 20.4437
Previous Daily High 20.0644
Previous Daily Low 19,889
Previous Weekly High 20,475
Previous Weekly Low 20.0781
Previous Monthly High 20.6382
Previous Monthly Low 19.7269
Daily Fibonacci 38.2% 19,956
Daily Fibonacci 61.8% 19.9974
Daily Pivot Point S1 19.8657
Daily Pivot Point S2 19.7897
Daily Pivot Point S3 19.6903
Daily Pivot Point R1 20.0412
Daily Pivot Point R2 20.1405
Daily Pivot Point R3 20.2166

Source: Fx Street

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