The Mexican Peso reached its highest level yesterday against the Dollar in seven years when the pair USD/MXN fell to 17.42its lowest price since May 2016.
This Tuesday, the pair tried a slight rebound that has taken it to 17.48, the day’s high, but shortly after it fell back to the lows reached yesterday in the European pre-opening, where it found support.
He Dollar Index (DXY), meanwhile, remains bullish against the major currencies, after hitting a five-week high of 102.75 yesterday. In any case, although the pair is losing traction on Tuesday, falling to a two-day low of 102.19, the trend on four-hour charts remains clearly up.
Traders of the pair will be closely watching the US retail sales data today and the meeting on the debt limit that the US president, Joe Biden, will meet with the Republican Speaker of the House of Representatives, Kevin McCarthy, at 19:00 GMT. Both events can generate volatility in the USD/MXN.
USD/MXN Levels
With the pair trading at time of writing above 17.46, gaining 0.16% daily, a break of 17.42 could trigger a regression towards 17.05, lowest level of 2016 recorded on April 29 of that year. Below the psychological zone of 17.00 wait 16.95floor of December 18, 2015.
To the upside, a rally is needed above the former support and now resistance located around 17.60. Above waits the barrier 17.83/84 (ceilings of May 9 and 8) and beyond the psychological level of 18.00.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
