USD/MXN plunged on Wednesday to new lows since April 2018 at 18.06. The pair has tried to recover ground today Thursday, but their attempts have been limited by 18.15, high of the day, so the bearish pressure remains firm.
The US dollar has advanced 50 pips today, raising the DXY index to 104.83, new high for the day. Its advance against the main currencies such as the euro, yen and pound is not having the same impact against the currencies of emerging countries, which are resisting the challenge much better.
The operators of the pair expect in the next hours employment data from Mexico and the United States. Mexico will publish its unemployment rate for January, while the US will reveal its weekly claims for unemployment benefitstogether with the unit labor costs for the fourth quarter of 2022.
USD/MXN Levels
At time of writing, the dollar is trading against the peso around 18.12, gaining 0.15% daily. The first major support appears on 18.05where the April 19, 2018 low is. Below 18.00/17.99the drop can extend to 17.52floor of August 25, 2017.
To the upside, the dollar needs to overcome the barrier located between 18.40/45 (where the ceilings of February 27 and 28 are) to ascend to 18.50 (maximum of February 24).
Source: Fx Street
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