- USD/MXN falls to a fresh seven-year low at 17.18.
- The Fed announcement and the dot chart could lead to strong moves in the USD/MXN.
- The DXY Index continues to range near the three-week lows hit yesterday.
He USD/MXN it has returned to record a new seven-year low for the fourth day in a row. This Wednesday the pair has fallen from 17.24 (daily maximum of the Asian session) to 17.18 in the European morning. Before the start of the American session, the pair is trading around 17.19, losing 0.14% on the day.
The dollar remains under some downward pressure after falling to 103.04 yesterday, a three-week low, after the moderation in US inflation data, which encourages investors to believe that the Fed will establish a pause in its rate hikes at the meeting this Wednesday, June 14. At time of writing, the DXY Index is trading around 103.13, losing 0.15% daily.
Traders in the pair will be watching US producer price data for May, although the main focus will be on the US Federal Reserve’s monetary policy announcement at 1800 GMT. The consensus expects rates to remain at 5.25%, but an unexpected rise, a more or less aggressive tone in Jerome Powell’s speech, or the nuances of the projection offered by the Fed’s dot chart, can generate movements. important in the USD/MXN.
USD/MXN Levels
With a broadly bearish trend in the short and long termthe USD/MXN now faces its next support in the zone 17.10/11, where the soils of May and March 2016 are, respectively. further down wait 17.05the lowest level recorded in April of that same year, which will be followed by the psychological zone of 17.00which should emerge from the containment barrier.
On the rise, the area 17.30/35, where the maximums of the current week are, will now exert resistance. Higher up, the area to overcome is in 17.40/45, where are the maximums of June 6 and 8. If it jumps over it, the crossing can move towards the surroundings of 17.60former support and highest level of last week.
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.
