- Mexican Peso outperforms among emerging-market currencies.
- USD/MXN slide goes on: six consecutive days and the ninth out of the last twelve.
The USD/MXN is falling for the sixth day in-a-row, falling more than 2% from last week’s top. After the beginning of the American session broke below 19.21 (previous low) and fell to 19.16, the lowest level since August 1.
As of writing it trades at 19.18, consolidating important daily losses. A weaker US Dollar continues to push the pair to the downside while at the same time the Mexican Peso strengthens among emerging market currencies.
Expectations of more rate cuts from the Federal Reserve and also hopes about a deal regarding Brexit and a partial agreement between the US and China continue to support the improvement in market sentiment, weakening the Dollar.
Key levels
The USD/MXN holds a bearish tone and despite showing oversold conditions, no signals of a correction are seen. As long as below 19.30 the bias will continue to favor the downside, with high odds of hitting new lows while below 19.20. The next strong support might be seen at 19.00/05, an uptrend line that if broken could expose 18.90 and the 2019 lows around 18.75.
On the upside, 19.30 is now a resistance followed by 19.38 and the critical 19.45/50 area (horizontal resistance and the 20-day moving average).
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