- The general fall of the US dollar unleashes volatility in financial markets.
- USD/MXN gives up Wednesday’s rally, showing the Mexican peso remains in command.
- A new test of 19.00/05 should not be ruled out.
USD/MXN is falling hard on Thursday, after a wild Wednesday. Yesterday, the pair jumped, rising not only above 19.30 but also as high as 19.46. It respected a downtrend line and resumed the decline, amid a broad fall in the US dollar.
On Wednesday, the USD/MXN reached a high of 19.46, trading above the 20-day moving average momentarily. The rally was capped by a downtrend line and closed the day below 19.30 – a sign that the dollar is not yet ready for a sustainable rebound.
All the positive evolution of the dollar has been reversed in the last 24 hours. The downtrend and momentum have reasserted. Below 19.30, the Mexican peso could retest the psychological zone of 19.00/05. A break down would target 18.85.
USDMXN daily chart
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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.
