USDMXN continues south for one more day giving up 0.17% at 18.9137 hitting fresh six month highs. The Mexico Trade Balance, came in at $0.79B, topping forecasts of $-0.245B in November while the Trade Balance s/a came in at $0.545B, below forecasts of $0.824B in November,
The Banxico cut its overnight interbank interest rate for the fourth policy meeting in a row by 25 basis points to 7.25% on December 19th. The Mexican peso has appreciated in December amid the signing of the new trade deal with the United States and Canada.
Read our Best Trading Ideas for 2020.
USDMXN Resistance and Support Levels to Watch
On the technical side, the USDMXN outlook is bearish for the short term as the pair trades below all major moving averages.
On the downside, first support for USDMXN pair stands at 18.8885 today’s low. A break below will target the next support level at 18.7930 the low from July 31st. A break below will pave the way for a move down to 18.7569 the low from April 15th.
On the flip side, first resistance for the pair stands at 18,9569 today’s top. The next resistance level will be met at 19.0840 the high from December 16th. What might change the bearish momentum is a close above the 50-day moving average at 19.2023. A break above that level will give bulls the upper hand, and a move up to 19.4454 might be the next target.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.