- USD/MXN falls below last Thursday’s low, extending its losses to a new multi-year low around $18.40.
- USD/MXN Price Analysis: A break below $18.40 would pave the way towards $18.00.
He USD/MXN It hit a nearly 4 1/2-year low around 18.4485, a level last seen in October 2018, extending its losses by 0.89% on the week. At the time of writing, the USD/MXN is trading at 18.4161.
Since the start of the week, the Mexican peso (MXN) has shown resistance to record a daily loss against the dollar (USD). Despite the USD/MXN session ending in the green on Tuesday, prices were reluctant to break through the solid resistance around the 20-day EMA at 18.7999 on the day. Although USD/MXN closed up 0.31%, looking at the price action, the big wick at the top of the body of Tuesday’s candlestick was a forecast of what was to come for the rest of the week.
Therefore, the USD/MXN fell for two days in a row, and is on its way towards the psychological 18.00 level, as it has decisively broken through the $18.50 level.
The next support for USD/MXN would be the daily low of August 7, 2018 at 18.4047. Break of the latter and the next support would be the psychological barrier of 18.00. Once exceeded, the USD/MXN would fall until April 17, 2018, swing low at 17.9388, which would be up in the air.
Conversely, if USD/MXN recaptures $18.50, that could open the door for a rally. Therefore, the first resistance for USD/MXN would be the 20-day EMA at 18.7312, followed by the confluence of the daily high on February 9 and the 50-day EMA around 18.9922. Once cleared the next stop will be the 100 day EMA at 19.2869.
USD/MXN Daily Chart
USD/MXN Key Technical Levels
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.
