#USDMXN @ 18.1715 is looking to extend its rally above 18.20 despite the further correction in the USD Index. (Pivot Orderbook analysis)

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• USD/MXN is looking to extend its rally above 18.20 despite the further correction in the USD Index.
• Scrutiny of the US Durable Goods Orders data shows that the majority of orders were for commercial aircraft.
• The annualized US GDP data is expected to land lower at 2.0% from the former release of 2.6%.

The pair currently trades last at 18.1715.

The previous day high was 18.19 while the previous day low was 18.0314. The daily 38.2% Fib levels comes at 18.1295, expected to provide support. Similarly, the daily 61.8% fib level is at 18.092, expected to provide support.

The USD/MXN pair is hovering near a two-week high of 18.19 in the Asian session. The major is showing strength despite further correction in the US Dollar Index (DXY). The USD Index has extended its correction to near 101.35 as investors’ risk appetite is displaying some recovery.

S&P500 futures have added some decent gains in the Asian session. US equities were a mixed bag on Wednesday as technology stocks outperformance other sectors. Upbeat earnings from Microsoft and Mea platforms strengthened NASDAQ while weak earnings performance from the manufacturing and capital goods sector capped the upside of the S&P500.

Blame from the First Republic Bank on the US government for being reluctant in providing liquidity support despite knowing about declining deposits impacted the confidence of consumers.

Poor demand for S&P500 companies due to overall weak quarterly performance strengthened the appeal for the USD Index. The US Dollar showed a V-shape recovery from 101.00 after upbeat Durable Goods Orders data. However, scrutiny of the economic data shows that the majority of orders were for commercial aircraft and what matters most is the demand for core capital goods which remained weak. It seems that firms have postponed their expansion plans due to higher interest rates from the Federal Reserve (Fed).

Going forward, the release of the US Gross Domestic Product (GDP) (Q1) data will remain in the spotlight. As per the consensus, the annualized GDP data is expected to land lower at 2.0% from the former release of 2.6%.

On the Mexican Peso front, investors are awaiting the release of the Trade Balance data. Upbeat economic data would improve the appeal for the Mexican Peso.

Technical Levels: Supports and Resistances

USDMXN currently trading at 18.1782 at the time of writing. Pair opened at 18.1493 and is trading with a change of 0.16 % .

The pair is trading above its 20 Daily moving average @ 18.0886, below its 50 Daily moving average @ 18.2857 , below its 100 Daily moving average @ 18.7126 and below its 200 Daily moving average @ 19.3191

The previous day high was 18.19 while the previous day low was 18.0314. The daily 38.2% Fib levels comes at 18.1295, expected to provide support. Similarly, the daily 61.8% fib level is at 18.092, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 18.0572, 17.965, 17.8986
• Pivot resistance is noted at 18.2158, 18.2822, 18.3744

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