USDMXN trades higher for the third consecutive session making fresh monthly highs as greenback gets a hand from better than expected economic data. The Conference Board’s (CB) Consumer Confidence Index jumped to 98.1 in June from 85.9 in May, beating the market forecasts of 91.8. However, the Chicago PMI rises to 36.6 in June bellow the expectations of 45, but above the previous reading of 32.3. Earlier today, the Case-Shiller Home Price Index rose 4% in April above the expectations of 3.8%.
The previous week the Central Bank of Mexico cut the interest rates by 50 basis point, and now the interest rates stand at 5% the lowest level since November 2016. The inflation in Mexico rose to 3.17% from 2.15%, and the bank expects that the inflation will stay close to its target 3%.
USDMXN is 0.17% higher at 23.1029, making fresh monthly highs and breaking above the 50-day moving average. The technical picture is bullish now, and an attempt to 23.50 looks possible—failure today to close above the 50-day moving average night trigger selling pressure down to 22.5268.
On the upside, the first resistance for the USDMXN pair stands at 23.2294 the daily high. A move above might push the pair to 23.7775 the high from May 20. In case USDMXN breaks above 23.7775, then the next resistance will be met at 24.0700 the high from May 18.
On the other side, immediate support for USDMXN will be met at 23,0333 today’s low. The next support for the pair stands at 22.5267 the 100-day moving average. The next target on the downside is at 22.3150 the low from June 24.
