USDMXN hits five-month lows below 19.50

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  • The dollar slumps after employment data, erasing recent gains.
  • USDMXN heading for the lowest weekly close since March 2020.

USDMXN fell to 19.47, hitting the lowest level since early June and then bounced back up to 19.50, but remains bearish. This comes amid widespread dollar weakness and rising stock markets.

If it closes the week at current levels, USDMXN would have the lowest daily close since March 2020. The key is to see if it manages to assert itself below 19.50, which would enable further declines ahead. If it bounces and holds, there could be rallies, up to 19.80, where the nearest strong resistance is.

Dollar down despite data

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The US employment report for October showed better-than-expected numbers across the board. Non-farm payrolls increased by 261,000 in October, above the 200,000 expected. The data initially pushed the dollar higher and equity markets lower, but after a few minutes, the dollar began a slide that is still continuing.

Among those that rise the most on Friday is the yuan Chinese and emerging markets. The latter also underpinned by the increase in the price of raw materials. Just as in previous sessions, the Mexican peso was not among the worst performers, on Friday it is not among the most advanced.

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With the employment data, a busy week ends, which included the Fed’s decision. The next one will also be complete. In the US the focus will be on the October inflation data on Thursday. While in Mexico, there will be inflation data on Wednesday and on Thursday it will be the decision of the Bank of Mexico.

Technical levels

USD/MXN

Overview
Today last price 19.5314
Today Daily Change -0.1186
Today Daily Change % -0.60
Today daily open 19.65
trends
Daily SMA20 19,925
Daily SMA50 20.0074
Daily SMA100 20.1506
Daily SMA200 20.1959
levels
Previous Daily High 19.78
Previous Daily Low 19.6308
Previous Weekly High 20.0384
Previous Weekly Low 19,785
Previous Monthly High 20,177
Previous Monthly Low 19,785
Daily Fibonacci 38.2% 19.6877
Daily Fibonacci 61.8% 19,723
Daily Pivot Point S1 19.5938
Daily Pivot Point S2 19.5377
Daily Pivot Point S3 19.4446
Daily Pivot Point R1 19,743
Daily Pivot Point R2 19.8361
Daily Pivot Point R3 19.8922

Source: Fx Street

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