Categories: Markets

USD/MXN returns to the 19.95 area due to a rise in the dollar

USD/MXN returns to the 19.95 area due to a rise in the dollar
  • Mexican peso fails to affirm key break.
  • The dollar recovers before advance in the yields of treasury bonds.
  • Mexico: moderate inflation, but still well above Banxico’s target.

USD/MXN is rising modestly on Monday and remains below 20.00. The pair had the lowest daily close in a month on Friday near 19.90. The short-term bias favors the Mexican peso, although it is not yet displaying enough strength to break with the consolidation mode.

Despite having the lowest close in days, and trading below 19.95, USD/MXN maintains a neutral bias. A statement below 19.90 will expose the key support at 19.80. To the upside, the break of 20.15/20 would enable further rallies, with targets at 20.25 and then 20.45.

The USD/MXN’s rebound on Monday is behind a recovery in the dollar after Friday’s fall. In addition, in the last few hours, Treasury bond yields have turned bullish, giving more support to the dollar. The advance of the USD/MXN is being limited by the rise in the equity markets.

Mexico: moderate inflation, but not so much

Monday in Mexico Inflation figures for mid-October were published. The consumer price index rose 0.44%, below the 0.53% expected, but the core rate rose 0.42%, more than the 0.35% market consensus.

The IPC had an annual variation of 8.53%, it is the lowest since the second half of July and implies a drop compared to the 8.64% of the previous fortnight.

Technical levels

USD/MXN

Panorama
Last Price Today 19.9487
Today’s Daily Change 0.0311
Today’s Daily Change % 0.16
Today’s Daily Opening 19.9176
Trends
20 Daily SMA 20.0818
50 Daily SMA 20.0412
100 Daily SMA 20.1691
200 Daily SMA 20.2292
levels
Previous Daily High 20.1404
Previous Daily Minimum 19.8855
Previous Maximum Weekly 20,177
Previous Weekly Minimum 19.8855
Monthly Prior Maximum 20.5794
Previous Monthly Minimum 19.7533
Daily Fibonacci 38.2% 19.9829
Daily Fibonacci 61.8% 20,043
Daily Pivot Point S1 19.8219
Daily Pivot Point S2 19.7263
Daily Pivot Point S3 19.5671
Daily Pivot Point R1 20.0768
Daily Pivot Point R2 20,236
Daily Pivot Point R3 20.3317

Source: Fx Street