- The rally of the Mexican peso following Trump’s announcement two weeks ago of no tariffs to Mexican imports ended at a strong support level and a significant retreat took place afterwards.
- Now USD/MXN is offering no clear signals as it trades again, near a critical resistance area but remains below, holding under relevant short-term moving averages.
In the very near term, the USD/MXN holds a bullish tone but it remains below the 19.30 critical level. A breakout above could trigger stops, boosting further the US Dollar. The target could be seen at 19.45.
On the flips side, the outlook for the Mexican peso will improve if it remains under 19.30. A decline back below 19.00, would expose the 18.90 support that protects the YTD low reached back in April around 18.75.
USD/MXN Daily Chart