Emerging Market Currencies on Demand USDMXN Breaks Below the 100-Day SMA

USDMXN trades lower for the third straight day after the rejection at the 50-day moving average. The USDMXN pair breached below the 100-day moving average as investors dumb safe-haven assets such as U.S. Dollar amid an improvement in investors sentiment after stronger than expected data from the USA today and Europe and China yesterday. 

Earlier today the U.S. Nonfarm Payrolls came in at 4,8 million, beating the market expectations of around 3 million in June. The 4.8 million new additions were the most jobs to be created in a month since the records began in 1939. The Unemployment Rate came at 11.1%, beating the consensus of 12.3%. The Average Hourly Earnings came in at 5% below the forecasts of 5.3%. 

Central Bank of Mexico (Banxico) the previous week cut the interest rates by 50 basis points at 5% marking the lowest level since November 2016. The inflation in Mexico rose to 3.17% from 2.15%, and the central bank now expects that the inflation will stay close to its target 3%. 

USDMXN Daily Technical Analysis

USDMXN is 0.53% lower at 22.5517, making fresh weekly lows and breaching below the 10-day moving average. The technical outlook turns bearish today below the 100-day moving average, and lower levels might be on the cards.

On the downside, initial support for USDMXN will be met at 22,4023 today’s low. The next support for the pair stands at 22.2628 the low from June 18. More bids might emerge at 21.8714 the low from June 16. 

On the contrary, the first hurdle for the USDMXN stands at 22.7442 the daily top. A break above might push the pair to 23.0206 the 50-day moving average. In case the air breaks above 23.0206, then the next resistance will be met at 23.2413 the high from June 30.  

Don’t miss a beat! Follow us on Telegram and Twitter.

USDMXN Daily Chart

More content