- USD/MXN with bullish intraday bias, bearish in the long term.
- Correction from levels above 19.00, finds support in the 18.80 zone.
- USD trades mixed and gains momentum after US data.
The USD/MXN It rises on Tuesday, following a two-day correction of the rally from multi-year lows near 18.55 (Jan 18) to 19.11 (Jan 19). The decline found support around the 18.80 zone and bounced towards 18.90.
The pair is trading at daily highs of 18.88 following the release of the US S&P Global PMI report, which beat expectations, boosting the US dollar overall, in an environment of rising US yields. Treasury bond. At the same time, emerging market currencies such as the Mexican Peso lost strength due to deteriorating market sentiment and falling commodity prices.
The Mexican peso needs to break and hold below 18.80 to regain strength. Next support lies at 18.65, followed by the recent low near 18.55.
The daily chart shows that the main trend is down, but technical indicators are modestly biased to the upside in the near term, suggesting some consolidation ahead, which could occur between 18.80 and 19.00, or with an upper bound at 19.11, a horizontal level and the 20-day simple moving average. A break above would strengthen the US dollar.
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.
