- USD/MXN rebounds strongly from its lowest level in almost three years.
- A strong support zone above 18.50 and Risk Aversion trigger the bounce.
USD/MXN rises on Wednesday after touching 18.55, the lowest level since February 2020. The rebound represents a correction after falling steadily since the beginning of the year.
The ongoing run faces resistance at 18.75. An upside break would target 18.85. The next vital resistance lies at 19.00/05, which should limit the upside. Above is 19.20 which, if broken, would weaken the Mexican peso.
A deterioration in market sentiment favored a correction in USD/MXN, which would continue to receive support while Wall Street values ​​continue to fall.
The Mexican peso needs to stay below 18.70 to keep the doors open for another test of the 18.55 zone and the 2020 low at 18.50. A break down would target 18.30.
USD/MXN daily chart
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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.
