USD/MXN sideways around 20.00 looking at the Fed

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  • 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.

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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.

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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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