- USD/MXN in consolidation mode.
- Markets awaiting the decision of the Federal Reserve.
- Next week is Banxico’s turn.
Financial markets are in standby mode, watching the Federal Reserve. This context favors USD/MXN trading sideways around 20.00, unchanged for Wednesday.
The Fed’s decision is expected to be a 75 basis point hike in interest rates. What the US central bank says, together with the macroeconomic projections of the FOMC staff and the words of Jerome Powell, are estimated to trigger great volatility in the markets, which could affect the USD/MXN.
On the day of fed, equity markets rose, albeit modestly and somewhat cautiously, on the weak economic outlook, to which was added a war speech by Vladimir Putin today. This limits the possible increases in currencies such as the Mexican peso and keeps the dollar in demand.
The next week it will be the turn of the Bank of Mexico, which is also on track to hike interest rates aggressively to deal with inflation. In Mexico, it is still above 8%, very far from the central bank’s objective.
USD/MXN remains sideways below the key zone starting at 20.17. If it continues below, the bias is expected to be to the downside. Immediate relevant support is at 19.90 and then the 19.80 area follows. In the opposite direction, if it breaks and asserts itself above 20.25, the dollar would be positioned for more gains.
Technical levels
USD/MXN
Panorama | |
---|---|
Last Price Today | 19.9794 |
Today’s Daily Change | -0.0230 |
Today’s Daily Change % | -0.11 |
Today’s Daily Opening | 20.0024 |
Trends | |
---|---|
20 Daily SMA | 20.0059 |
50 Daily SMA | 20.1942 |
100 Daily SMA | 20.1368 |
200 Daily SMA | 20.2873 |
levels | |
---|---|
Previous Daily High | 20.0796 |
Previous Daily Minimum | 19.9031 |
Previous Maximum Weekly | 20.1616 |
Previous Weekly Minimum | 19.7533 |
Monthly Prior Maximum | 20.8261 |
Previous Monthly Minimum | 19.8019 |
Daily Fibonacci 38.2% | 20.0122 |
Daily Fibonacci 61.8% | 19.9705 |
Daily Pivot Point S1 | 19.9105 |
Daily Pivot Point S2 | 19.8186 |
Daily Pivot Point S3 | 19,734 |
Daily Pivot Point R1 | 20.0869 |
Daily Pivot Point R2 | 20.1715 |
Daily Pivot Point R3 | 20.2634 |
Source: Fx Street
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