- Summary:
- USDMXN rebound today after the three day correction from the all-time highs that hit on Monday amid the turbulence in financial markets. Central banks
USDMXN rebound today after the three-day correction from the all-time highs that hit on Monday amid the turbulence in financial markets. Central banks and governments stepped in aggressively injecting liquidity to markets and relief packages to small and medium-sized businesses in an attempt to off-set the coronavirus impact on the economy.
The United States Personal Income came in at 0.6% topping expectations of 0.4% in February. The Personal Consumption Expenditures Price Index, year on year, increased to 1.8% in February from previous 1.7%.
The Mexico Trade Balance, came in at $2.911B, topping the expectations of $0.95B in February. The Central Bank of Mexico last week cut the overnight interbank interest rate by 50 bps to 6.5%, as well as to adopt all necessary measures and tools to provide liquidity and improve the functioning of local financial markets.
Read our Best Trading Ideas for 2020.
USDMXN Technical Evaluation
USDMXN is 2.23% higher at 23.4541 as the recent correction from the recent highs stalled at 22.83. Buyers stepped in today as the recession fears remerged amid the coronavirus crisis. The technical outlook for USDMXN is bullish for the pair, and the pullbacks should be considered as a buying opportunity.
On the downside, the initial resistance for USDMXN pair will be met at 23,6185 today’s high. The next hurdle for the pair stands at 24.2573, which guards the recent highs at 25.1636.
On the flip side, first support will be met at 22.8596 the daily low. Next support stands at 22.4781 the low from March 17th. A credible move below might open the way for a move down to 21.3278 the low from March 16th.