USDMXN trades sharply higher after the weaker consumer confidence from Mexico. The consumer confidence for February in Mexico fell to 43.3 from 44.1 in January. The Consumer Confidence s.a registered in at 43.9, topping the expectations of 43.4. In the United States the Nonfarm Productivity came in at 1.2% below the analysts’ consensus of 1.4% in the fourty quarter. Initial Jobless Claims came in at 216,000 beating the forecasts of 215K on February 28.
USDMXN retreated from five month highs after the Federal Reserve cut the interest rates by 50 basis points to 1%-1.25% in a move to offset the impact of the coronavirus outbreak. The central Bank of Mexico lowered the interest rates by 25 basis points on February 13, and the Mexican peso depreciated against the US dollar to five month lows.
USDMXN is 1.25% higher at 19.7814 close to five-month highs. The technical outlook is bullish for the short term as the pair managed to break above the descending trend channel that started in September, and also trades aove the major moving averages.
On the upside, the initial resistance for USDMXN will be met at 19,8019 today’s top. The next resistance on the upside stands at 19.8820 the high from March 2nd. If the pair breaches that level the next supply zone stands at 19.9946 the high from September 4th 2019.
On the flip side, immediate support will be met at 19.4990 the daily low. Next support area to watch is at 19.2277 the 200-day moving average. A break below might open the way for a move down to 19.0447 the 100-day moving average.