- Mexican peso resumes rally against US dollar to highest in a month.
- USD/MXN awaits FOMC meeting trading at daily lows, looking at critical long-term support.
The USD/MXN dropped below 19.20 and fell to 19.15 on Wednesday during the American session, before the release of the FOMC statement. The pair awaits the outcome of the Fed meeting trading at the lowest level in a month.
A decline across the board of the US dollar and particularly against emerging market and commodity currencies pushed USD/MXN further to the downside. Traders now await the outcome of the FOMC meeting.
Will it test the long-term uptrend line?
A consolidation below the 19.20 support area would clear the way for a test of a long-term uptrend line that stands around 19.00/07. The mentioned level should limit the decline and favor a rebound. If the pair drop below 19.00 a test of the 2019 low, at 18.74 seems likely.
If USD/MXN rises back above 19.25 it will alleviate the bearish pressure but only above 19.37 (20-day moving average) the greenback could show more strength.
Share
