USDMXN hit the daily lows at 18.7465 to levels that we haven’t seen since October 2018. The pressure came after the U.S. Nonfarm Payrolls came in at 145K, well below the forecasts of 166K in December. United States Average Hourly Earnings (MoM) came in at 0.1%, below estimates of 0.3% in December. The yearly reading for the Average Hourly Earnings came in at 2.9% below forecasts of 3.1%. The U.S. Labor Force Participation Rate came in at 63.2% in line with consensus. U.S. Unemployment Rate was stable at 3.5% in line with expectations.
On the Mexican economic news, the Consumer Confidence came in at 43.4 in December from previous 43.53. The Industrial Output of Mexico in November (month over month) came in at 0.8% below the analyst’s consensus expectations of 1.8%.
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USDMXN slipped to 14-month lows after the disappointment that came from the NFP data, but as of writing the pair managed to rebound from the daily lows giving up 0.33% at 18.7756. The technical outlook is clearly bearish for USDMXN.
On the technical side, the first support will be met at 18.7465 the daily low. Next level to watch is at 18.6052 the low from August 27th. While a break below might drive the price down to 18.4116 the low from August 7th.
On the flip side, immediate resistance for the pair will be met at 18,8573 today’s high. The next resistance to watch stands at 18.9259 the high from January 7th. If the pair breaches that level the pair would meet the next supply zone at 19.0871 the high from December 16th. Buyers can reverse the recent downtrend only if the price breaks above the 50-day moving average at 19.1566.