USDMXN retreat after earlier today rejected for the second time at the 100-day moving average. During July the pair is hovering around the 50 and 100-day moving average after the correction from multi-year highs that stalled at the 100-day moving average.
Mexico Industrial Output came in at -1.8%, below the forecasts of 0.8% in May, while the yearly reading Industrial Output came in at -30.7%, well below the expectations of -24.3%.
From the USA, the Producer Price Index (PPI) registered in at -0.2% below the expectations of 0.4% in June; the yearly reading PPI came in at -0.8% also below the forecasts of -0.2%. The Producer Price Index excluding Food & Energy came in at -0.3%, below the expectations of 0.1%.
USDMXN is 0.11% lower at 22.6206 looking for a direction below the 100-day moving average. The technical picture remains bullish for the pair despite the recent rejection at the 100-day moving average. A confirmation for the bulls would be a break above the 100-day moving average which might be the start of another leg higher.
On the downside, first support for the USDMXN pair stands at 22,5872 today’s low. The next support would be met at 22.2407 the low from July 7. More bids might emerge at 21.5004 the low from June 9.
On the flip side, initial resistance for the USDMXN stands at 22.8359 the daily high. A break above might push the pair towards 23.0686 the high from July 1. In case the pair breaks above 23.0686, then the next resistance will be met at 23.7686 the high from May 20.
