untitled design

USD/MXN Price Analysis: The Mexican Peso remains close to its 7-year lows, trapped in a tight range around 17.45

  • The USD/MXN is operating this Tuesday in a narrow range between 17.43 and 17.46.
  • The pair remains under heavy downward pressure just short of 17.41, a fresh 7-year low hit on Friday.

He USD/MXN It is trading this Tuesday in a narrow range located between 17.43 and 17.46, very close to its new six-year low reached last Friday June 2 at 17.41 after the US employment data.

Pair traders remain cautious ahead of next week’s Fed meeting. Markets increasingly see the possibility that the Federal Reserve will leave its rate unchanged on Wednesday June 14 due to the slowdown in the US economy.

In the remainder of the week there will hardly be any important data from the US, whose main interest will be in the trade balance for April and the weekly claims for unemployment benefits for the week of June 2. Mexicoon the other hand, it will publish relevant data, the May inflationwhich is expected to drop to 5.9% from 6.25% in April.

The Dollar Index (DXY), for its part, is trying to gain ground after the oscillating movements at the beginning of the week. Although it fell to 103.81 at the European open, the greenback has recovered to the 104.00 zone in the last few hours, recently hitting a daily high of 104.18, still far from yesterday’s high of 104.40 and the high of the last two and a half months recorded. last Wednesday May 31 at 104.70.

USD/MXN Levels

With the pair trading above 17.45 at time of writing, losing 0.08% daily, the first support appears at 17.41, seven-year low recorded on June 2. Below that, the USD/MXN could fall to 17.10floor of March 31, 2016, and subsequently to 17.00important psychological area.

On the rise, the area 17.60 (old support) re-erects as resistance. If exceeded, the crossing can move towards 17.77ceiling of May 31, en route to the area 17.99/18.00highest level of May 23 and psychological level, respectively.

USD/MXN 1 hour chart

Source: Fx Street

You may also like

Most popular