USD/MXN drops sharply below 20.00, heads for lowest close in two months
- The Mexican peso is among top performers across the board.
- USD/MXN breaks 5-day range and accelerates the move to the downside.
The Mexican peso rose sharply against the US dollar on Thursday despite the slide in equity prices in Wall Street. The risk aversion tone in Wall Street did not affect Mexican assets. Also, other Latin American currencies are up versus the greenback.
Last week, the USD/MXN broke below critical support levels and also fell under the 20.00 area. Today dropped under the 19.80 and declined further. During the US session, the pair bottomed at 19.61, hitting the lowest intraday level since November 8.
Price is holding near the lows, about to post the weakest close in two months. From the December high it has fallen almost 5%. A recovery in Mexican bonds, a rate hike from Banxico, and a positive response from markets to the 2019 budget, drove USD/MXN lower. So far in December, the Mexican peso is the best performer among the most-traded currencies.
The technical outlook continues to favor the downside. A consolidating over the next sessions seems likely particularly if USD/MXN holds above the 19.60 strong support area. A solid slide below 19.60 would open the doors to more losses.
Today Last Price: 19.63
Today Daily change %: -1.36%
Today Daily Open: 19.9015
Previous Daily SMA20: 20.177
Previous Daily SMA50: 20.0861
Previous Daily SMA100: 19.5253
Previous Daily SMA200: 19.3588
Previous Daily High: 19.9718
Previous Daily Low: 19.8409
Previous Weekly High: 20.205
Previous Weekly Low: 19.8092
Previous Monthly High: 20.6355
Previous Monthly Low: 19.576
Previous Daily Fibonacci 38.2%: 19.9218
Previous Daily Fibonacci 61.8%: 19.8909
Previous Daily Pivot Point S1: 19.8377
Previous Daily Pivot Point S2: 19.7739
Previous Daily Pivot Point S3: 19.7068
Previous Daily Pivot Point R1: 19.9685
Previous Daily Pivot Point R2: 20.0356
Previous Daily Pivot Point R3: 20.0994