USDMXN continues higher for the 16 trading session as the crude oil price slumps to the lowest level since 2002 amid the coronavirus disruptions in the global economy and the crude oil price between Russia and Saudi Arabia.
The oil pegged currencies took a hit on the chin after the crude oil price crashed below the $25 mark. The Mexican peso is one one of the currencies that pressured the most the last four weeks amid the coronavirus outbreak crisis. On the other hand, USD attracts investors attention as a safe-haven asset amid the global USD funding crunch and despite the Fed’s intervention to ensure the liquidity in the markets.
The Central Bank of Mexico decided on Friday to cut the overnight interbank interest rate by 50 basis points to 6.5%, as well as to adopt all necessary measures to provide liquidity and improve the functioning of local financial markets.
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USDMXN Resistance and Support
USDMXN is 2.85% higher at 25.1070 as the rally accelerates after February 20 and the turbulence in financial and commodities markets around the globe. The technical outlook is bullish for the pair, and higher level might be on the cards, as the pair hovers in unchartered territory.
On the upside, initial resistance for USDMXN will be met at 25,1168 today’s high. The next hurdle for USDMXN on the upside stands at 25.1200 psychological mark.
On the flip side, first support will be met at 24.4122 the daily low. Next support zone to watch is at 22.8231 the low from March 18th. A credible break below might open the way for a move down to 21.3712 the low from March 16th.
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