USDMXN trades sharply higher for the fourth consecutive trading session and hits levels that we haven’t seen for many years. The pair hit the daily high at 22.0987 as the oil pegged currencies took a hit on the chin after the crude oil price crashed below the $30 mark level amid the oil price war between the Russia and Saudi Arabia. Mexican peso is one one of the currencies that pressured the most today amid the crude oil crisis. On the other hand USD is lower against the majors amid exoectations of further interest rate cut by Fed.
On the data front, the Mexico Core Inflation came in at 0.36%, below the forecasts of 0.38% in February. The 12-Month Inflation came in at 3.7% above the estimates of 3.56%. The Headline Inflation for the country came in at 0.42% topping the expectations of 0.29%.
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USDMXN Technical Outlook
USDMXN is 5.05% higher at 21.1237 in a bullish move that started after the pair breached above the descending trading channel that started since September 2019. The positive outbreak enhanced after USDMXN breached above the 100-day moving average. The technical outlook is clearly bullish and highe level are on the cards.
On the upside, the initial resistance for USDMXN will be met at 22,0987 today’s top. The next resistance on the upside stands at 22.1100 psychological mark.
On the flip side, immediate support will be met at 20.1066 the daily low. Next support area to watch is at 19.30351 the 100-day moving average. A break below might open the way for a move down to 18.9185 the low from February 24th.
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