- USD/MXN hits 2.5-week highs at 17.89.
- The Dollar measured by the DXY Index moderates its gains from previous days and trades with slight losses.
- The bulls focus on the $18.00 area.
- The USD/MXN trend on the daily chart remains bearish despite the correction.
The USD/MXN has risen strongly at the beginning of the week, rising from the daily low of 17.74 to a 17 day high at 17.89 during the European morning.
The dollar for its part, has lost strength this Monday against the main currencies. He DXY index it has fallen in the Asian session to 102.96, its lowest level in two days. At time of writing, the greenback is trading above 103.09, losing 0.10% daily.
The market tone is cautious, with the focus on the negotiations on the debt ceiling in the United Statesyou. Today, Joe Biden, US President, is scheduled to meet again with Kevin McCarthy, Republican Speaker of the House of Representatives. During the day, different members of the Fed will also speak, such as James Bullard, Thomas Barkin, Raphael Bostic and Mary Daly, being able to move the Dollar.
Later in the week, Mexico will publish its inflation data for the first half of May on Wednesday and first-quarter GDP on Friday, which is expected to rise to 3.9% from 3.6% in the fourth quarter of 2022.
With the pair currently trading above 17.87, gaining 0.50% on the day, the next resistance area for buyers to attack appears at 18.00. Previously, there will be an intermediate barrier in 17.94, maximum of May 5. A clear break above this level will point to 18.20ceiling of April 27 and of the last seven weeks.
On the downside, a break of the seven-year low in 17.42 reached on May 15 could trigger a reversal towards 17.05, lowest level of 2016 recorded on April 29 of that year. Below the psychological zone of 17.00 wait for support 16.95floor of December 18, 2015.
USD/MXN 1 hour chart
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.