- The Mexican peso maintains weekly gains against the dollar.
- Emerging market currencies are weathering the wave of risk aversion well.
- USD/MXN is headed for the third consecutive weekly decline.
The USD/MXN continued to fall on Friday and bottomed at 19.84, the lowest level in a month. It then trimmed losses and rose towards 19.90 as Wall Street turned negative.
Emerging market currencies have so far weathered the wave of risk aversion, but the negative tone in financial markets remains a big risk. An increase in tensions could affect not only the assets of emerging markets, but also their currencies.
Wall Street indices opened positive on Friday and then reversed course. The Dow Jones falls 0.71% and the S&P 500 falls 0.63%. The move took USD/MXN back to the 19.90 zone.
A daily close below should keep negative momentum intact, with room to test next support at 19.80. The next level to watch is the April low at 19.72.
If the dollar manages to recover above 19.90, the bearish bias would be alleviated. The next critical resistance lies at 20.05. If USD/MXN breaks above the 20-day SMA at 20.20, the short-term bearish outlook would be nullified.
|Last Price Today||19.8863|
|Today’s Daily Change||-0.0482|
|Today’s Daily Change %||-0.24|
|Today’s Daily Opening||19.9345|
|20 Daily SMA||20.2361|
|50 Daily SMA||20.1848|
|100 Daily SMA||20.3695|
|200 Daily SMA||20.4441|
|Previous Daily High||20.0737|
|Previous Daily Minimum||19.8712|
|Previous Maximum Weekly||20,475|
|Previous Weekly Minimum||20.0781|
|Monthly Prior Maximum||20.6382|
|Previous Monthly Minimum||19.7269|
|Daily Fibonacci 38.2%||19.9485|
|Daily Fibonacci 61.8%||19.9963|
|Daily Pivot Point S1||19.8459|
|Daily Pivot Point S2||19.7573|
|Daily Pivot Point S3||19.6434|
|Daily Pivot Point R1||20.0484|
|Daily Pivot Point R2||20.1623|
|Daily Pivot Point R3||20.2509|
Source: Fx Street