- The dollar extends its slide against emerging market currencies.
- The Mexican peso is at the highest level since February 2020.
- USD/MXN remains under pressure below 18.90, despite oversold readings.
USD/MXN falls for the seventh time in the last eight trading days and is trading at the lowest level since February 2020, below 19.00. The pair bottomed at 18.81, before bouncing modestly.
The weakness of the US dollar pushed USD/MXN further lower. Technical factors also had a downward influence. The pair managed to consolidate below the strong support (now resistance) at 19.00/05.
Technical indicators, such as the RSI below 30, indicate an oversold situation. Despite this, signs point to further losses. The next support zone lies at 18.75 and then comes the 2020 low near 18.50. A bounce, albeit contained below 19.15, should not change the current USD/MXN downtrend.
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.
