The USDMXN exchange rate has experienced a rebound and is approaching 17.10 due to a shift to a more cautious market sentiment.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• USD/MXN has shown a recovery move to near 17.10 as the market mood is turning cautious.

The pair currently trades last at 17.0936.

The previous day high was 17.1894 while the previous day low was 17.0243. The daily 38.2% Fib levels comes at 17.0874, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1264, expected to provide resistance.

The USD/MXN pair has rebounded to near 17.10 after printing a fresh seven-year low in the European session. The asset is expected to remain less volatile as US markets will be closed on Monday on account of Juneteenth.

S&P500 futures have extended their losses as the risk appetite of the market participants has trimmed due to the extended weekend in the US. The US Dollar Index (DXY) has witnessed some selling pressure after recovering to near 102.56 as investors are expecting that interest rates by the Federal Reserve (Fed) will peak sooner than the guidance provided.

Fed chair Jerome Powell, in his monetary policy statement last week, commented that two interest rate hikes are appropriate as labor market conditions are still tight and the core Consumer Price Index (CPI) is showing persistence.

The journey of bringing down inflation to desired levels is far from over, however, short-term consumer inflation expectations have softened sharply. Also, Consumer Sentiment Index has improved significantly after a sheer deceleration in the consumer and producer price index due to lower gasoline prices.

Meanwhile, the Mexican Peso is on the seventh sky as interest rates by the Bank of Mexico (Banxico) are at 11.25%. Going forward, investors will keep focusing on the Retail Sales data (April). As per the preliminary report, monthly economic data is seen contracting by 0.3% against a stagnant performance reported last month. Annualized data is expected to expand to 2.9% vs. the prior release of 2.5%.

Technical Levels: Supports and Resistances

USDMXN currently trading at 17.0978 at the time of writing. Pair opened at 17.0738 and is trading with a change of 0.14 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 17.4948, 50 SMA 17.7314, 100 SMA @ 18.1001 and 200 SMA @ 18.8469.

The previous day high was 17.1894 while the previous day low was 17.0243. The daily 38.2% Fib levels comes at 17.0874, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1264, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 17.0022, 16.9307, 16.8371
• Pivot resistance is noted at 17.1674, 17.261, 17.3325

[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group