He USD/MXN fell in the American session yesterday to $18.48, its lowest level since August 2018. Since then, the pair has recovered close to 20 cents, rising at noon in Europe to $18.67, maximum of the dayto.
The dollar is recovering ground against other currencies, driven by fears of further rate hikes by the Fed. The risk aversion climate is benefiting the Dollar Index (DXY)which has just reached the zone of 104.60, its new six-week high.
With no data to be released on the Mexico calendar, the United States will only offer mid-level data, such as export and import prices for January that will be released today. The focus will be on speeches by two FOMC members, Thomas I. Barkin (Richmond Fed President) and Michelle W. Bowman, Governor of the Federal Reserve Board.
USD/MXN Levels
With USD/MXN trading at time of writing above 18.64, gaining 0.62% on the day, the first resistance appears at 18.75, maximum of February 15. Above awaits the psychological zone of $19.00. if surpassed, 19.29 it will be a tough barrier to overcome, as it is a six-week high on February 6.
To the downside, a clear break of 18.48/18.50 (strong support area where the bottom of yesterday and the last four and a half years is), could cause a collapse to the area 17.93/99, where are the 2018 minimums recorded in April of that year. below awaits 17.44lowest level of July 2017.
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.
