He USD/MXN experienced a strong rebound to the upside in the American session on Thursday. After falling to new lows of almost five and a half years at 17.89, the pair soared relentlessly until reaching its European opening on Friday on Friday. highest level in three weeks at 18.59.
The momentum has not been sustained, and in the last three hours the pair has lost more than 30 cents to bottom around 18.25, the daily low. At time of writing, and with US Non-Farm Payrolls in focus, the pair is trading above 18.30, shedding 0.10% daily.
The movement of the Dollar Index against the main currencies continues not to correspond to that shown against the peso. The DXY is trading this swinging Friday in a range of just over 25 pips between 105.07 and 105.35, remaining sideways.
After the data of Mexico inflation yesterday, which moderated to 7.62% in February, below the estimated 7.68%, USD/MXN traders’ attention is focused today on the US employment data, which is expected to show 205,000 new jobs. job. Any significant deviation from this figure could cause a considerable movement in the pair.
USD/MXN Levels
If you keep going back, the first support is now in the psychological zone of $18.00. Below, 17.89, minimum of yesterday 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.
On the upside, the first major resistance appears at 18.75, maximum of February 15. Above, the psychological barrier 7:00 p.m. will act as a limit. If you manage to overcome it, the promotion can reach 19.29ceiling of February 6 and of the last two months.
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.
