USD/MXN plummets to lows since February 2020 and points to 19.00

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  • Strong rise in emerging market currencies and those linked to commodities.
  • USD/MXN breaks strong support at 19.30, the intermediate at 19.15 and goes for 19.00.

USD/MXN broke below 19.30 and extended the decline to 19.06, the lowest level since February 2020. The outlook remains bearish, although there is strong support at 19.00/05.

In case of reaching the 19.00 zone, an upward rebound could be expected, which should lose strength in the vicinity of 19.15; and if it exceeds said level 19.25/30, it could contain the advance. If the bearish course extends below 19.00, the next supports appear at 19.88 and then 19.72.

Emerging Market Currencies Rise

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The advance of the Mexican peso against the dollar is not very surprising on Tuesday. USD/ZAR (South African rand), USD/KRW (Korean won) and USD/MXN are all down more than 1% so far this day. In turn, the NZD and the AUD are also advancing firmly against the dollar.

The rise in the price of commodities, led by the rally of 2.5% of the barrel of WTI is a driving factor for this group. The expectation of a less aggressive Federal Reserve, plus signs of a slowdown in Europe, contribute to the weakness of the dollar.

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In a few hours, inflation data from Germany will be released. In the US, the next relevant report will be on Wednesday with the growth figures for the third quarter and on Friday the official employment report.

technical levels

USD/MXN

Panorama
Last Price Today 19.0901
Today’s Daily Change -0.2221
Today’s Daily Change % -1.15
Today’s Daily Open 19.3122
Trends
20 Daily SMA 19.4622
SMA of 50 Daily 19.8049
SMA of 100 Daily 20.0081
SMA of 200 Daily 20.1035
levels
Previous Daily High 19.3678
Minimum Previous Daily 19.2951
Previous Weekly High 19.5924
Previous Weekly Minimum 19.3054
Maximum Prior Monthly 20,177
Minimum Prior Monthly 19,785
Daily Fibonacci 38.2% 19.3229
Daily Fibonacci 61.8% 19.3401
Daily Pivot Point S1 19.2822
Daily Pivot Point S2 19.2523
Daily Pivot Point S3 19.2095
Daily Pivot Point R1 19,355
Daily Pivot Point R2 19.3978
Daily Pivot Point R3 19.4277

Source: Fx Street

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