USD/MXN jumps to 20.45, dollar soars on recession fears

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  • Emerging market currencies extend their weekly losses on Friday.
  • US dollar remains firm on risk aversion, DXY rises 0.65%.
  • USD/MXN tests critical resistance contained by the 100-week SMA.

The U.S. dollar rose against emerging market currencies on Friday, extending weekly gains fueled by global concerns over growth prospects and central bank rate hikes. the mexican peso it is one of the worst performing currencies.

The USD/MXN jumped to 20.46 on Friday, reaching the highest level in two weeks. It then pulled back to the 20.30 level. Volatility is likely to remain elevated as panic continues to drive price action.

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After a brief pause, USD/MXN resumed gains on Friday, adding weekly gains. It started rising from 20.05 (20-day SMA). The rise found resistance at the strong 20.45 barrier that contains the 100-week SMA. A consolidation above it should point to more gains. The next strong resistance is at 20.70.

fear almost everywhere

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On Wall Street, the main indices are in the red but off the lows. Bond yields have fallen sharply, reflecting risk aversion and lower expectations of monetary tightening. US economic data showed a larger-than-expected decline in ISM manufacturing in June that fueled recession fears.

Despite the slowdown in activity, high inflation is putting pressure on the Fed and other central banks to aggressively tighten monetary policy. Higher rates are often a negative for emerging markets.

USD/MXN weekly chart

Technical levels

USD/MXN

Panorama
Last Price Today 20.2933
Today’s Daily Change 0.1874
Today’s Daily Change % 0.93
Today’s Daily Opening 20.1059
Trends
20 Daily SMA 20.0323
50 Daily SMA 20.0514
100 Daily SMA 20.19
200 Daily SMA 20.4264
levels
Previous Daily High 20.2657
Previous Daily Minimum 20.0616
Previous Maximum Weekly 20.3786
Previous Weekly Minimum 19,826
Monthly Prior Maximum 20.7028
Previous Monthly Minimum 19.4709
Daily Fibonacci 38.2% 20.1396
Daily Fibonacci 61.8% 20.1877
Daily Pivot Point S1 20.0231
Daily Pivot Point S2 19.9403
Daily Pivot Point S3 19,819
Daily Pivot Point R1 20.2272
Daily Pivot Point R2 20.3485
Daily Pivot Point R3 20.4313

Source: Fx Street

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