USDMXN Rebounds from Eight-Month Lows

USDMXN turns higher for the day after better Initial jobless claims from the USA.  The U.S. Initial Jobless Claims came in at 214K, below forecasts of 220K on January 3. The previous week reading revised to 223,000 from 222,000. The four-week moving average came in at 224K below the estimates of  236.64K.

On the Mexican economic news, the Headline Inflation came in at 0.56% above forecasts of 0.5% in December. 12-Month Inflation registered at 2.83%, topping expectations of 2.76%. The Core Inflation came in at 0.41% in line with forecasts in December.

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USDMXN Technical Levels to Watch

USDMXN adds 0.04% at 18.8263 in a day that the US dollar strengthens across the board.  The technical outlook is negative for the pair  On the technical analysis side, the USDMXN outlook is negative as the pair hovers to seven-month.

On the upside, first resistance for USDMXN will be met at 18,8434 today’s top. The next target to watch stands at 19.024 the high from January 3rd. In case the pair breaks above the next resistance will be met at 19.1628 the 50-day moving average.  A close above the 50-day MA might cancel the recent bearish momentum that started in early December 2019.

On the flip side, immediate support for the pair stands at 18.7607 today’s low. If the pair breach below might open the way for a move down to the next support level at 18.4942 the low from October 1st 2018.

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