He USD/MXN continues with the strong rebound that began in the last hours of Thursday, extending its advance for the third consecutive day. The pair has rallied over 60 pips so far on Monday, rallying from the Asian session’s two-day low of 18.23 to a new four and a half week high at 18.87 at European noon.
The rise of the pair, contrary to the movement of the dollar against the rest of the currencies in recent days, is trying to resist the strong downward trend experienced by the USD/MXN in recent months. We recall that the Dollar Index (DXY) has fallen today to 103.68, its lowest level since February 16.
Traders of the Mexican peso will be very aware of oil prices today. He WTI has plunged in the last hour to five-week lows at 72.92. The Mexican peso is susceptible to fluctuations in black gold, among other things.
The major focus of the week will be on the US inflation announcement for February due out tomorrow. The Fed’s decision on March 22 will partly depend on its result, something that will also have an impact on the peso, due to the influence that interest rate differentials between Mexico and the United States have on the pair.
USD/MXN Levels
With the pair trading at time of writing above 18.71, gaining 1.18% on the day, first resistance appears at the 18.87 daily high. Above, the target is on 18.99/19.00, where is the maximum of February 9 and the psychological barrier. Higher up wait 19.29maximum of February 6 and of the last two months.
On the way down, the first support is in the psychological zone of $18.00. Below, 17.89, minimum of March 9 and of the last five years, is the level to break. If it breaks, the pair can slide to 17.60minimum for the month of September 2017.
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.
