- Despite the broad weakness for the greenback on Monday, USDMXN had a brief flurry back up to 19.39 earlier in the session and remains a touch higher on the session, with some analysts exercising caution that the most recent peso recovery may fail to garner further momentum.
- Indeed, despite the move through the 20-day EMA, overall conditions suggest the move lower for USDMXN over the past few sessions is considered corrective. The next key support to watch lies at 19.0575, the 50-day EMA. A clear break of this average, would undermine a bullish theme and expose 18.5999, the Aug 16 low.
- For bulls, a break back above the 20-day EMA (currently at 19.5240) would be a bullish development. A further resumption of gains would refocus attention on key resistance and the bull trigger at 20.2181, the Aug 5 high.
- Amid today’s national holiday, the economic calendar remains light this week, with just Aggregate Supply and Demand data due on Wednesday. Retail sales and economic activity will cross next week.
MEXICO: USDMXN Pullback Considered Corrective
Last updated at:Sep-16 15:32By: Jack Lewis
Mexico
- Despite the broad weakness for the greenback on Monday, USDMXN had a brief flurry back up to 19.39 earlier in the session and remains a touch higher on the session, with some analysts exercising caution that the most recent peso recovery may fail to garner further momentum.
- Indeed, despite the move through the 20-day EMA, overall conditions suggest the move lower for USDMXN over the past few sessions is considered corrective. The next key support to watch lies at 19.0575, the 50-day EMA. A clear break of this average, would undermine a bullish theme and expose 18.5999, the Aug 16 low.
- For bulls, a break back above the 20-day EMA (currently at 19.5240) would be a bullish development. A further resumption of gains would refocus attention on key resistance and the bull trigger at 20.2181, the Aug 5 high.
- Amid today’s national holiday, the economic calendar remains light this week, with just Aggregate Supply and Demand data due on Wednesday. Retail sales and economic activity will cross next week.
