#USDMXN @ 19.4386 Mexican Peso erases weekly gains versus US Dollar. (Pivot Orderbook analysis)

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• Mexican Peso erases weekly gains versus US Dollar.
• A decline in equity markets weighs on emerging market currencies.
• Slides in USDMXN seem limited while above 19.30.

The pair currently trades last at 19.4386.

The previous day high was 19.4034 while the previous day low was 19.282. The daily 38.2% Fib levels comes at 19.3284, expected to provide support. Similarly, the daily 61.8% fib level is at 19.357, expected to provide support.

The USDMXN rose from 19. 30 and peaked at 19.47, the highest level in three days during Thursday’s American session, boosted by a stronger US Dollar and a deterioration in risk sentiment.

Economic data from the US released on Thursday showed an unexpected decline in the Philly Fed to -19.4 in November from -8.7. In a different report, Continuing Jobless Claims rose to the highest level since April. Housing Starts and Building Permits dropped in October, although numbers came in above expectations.

The Dollar Initially it dropped but then recovered strength boosted by higher US yields and also risk aversion. In Wall Street, the Dow Jones is falling by 0.60%, the Nasdaq drops by 0.80% and the S&P 500 by 0.98%. The deterioration in risk sentiment weighs on emerging market currencies with the Mexican Peso no among the worst performers.

Despite rising on Thursday, USDMXN remains with a bearish bias. In the short-term it continues to consolidate after finding support above 19.30. A firm break lower would open the doors to further losses targeting 19.15 initially and then 19.00/05.

On the upside, initial resistance emerges at 19.50 and then a stronger area at 19.60. A daily close above would alleviate the bearish bias, suggesting a test of 19.80.

Technical Levels: Supports and Resistances

USDMXN currently trading at 19.421 at the time of writing. Pair opened at 19.3132 and is trading with a change of 0.56 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 19.6594, 50 SMA 19.8952, 100 SMA @ 20.0916 and 200 SMA @ 20.1431.

The previous day high was 19.4034 while the previous day low was 19.282. The daily 38.2% Fib levels comes at 19.3284, expected to provide support. Similarly, the daily 61.8% fib level is at 19.357, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 19.2623, 19.2115, 19.1409
• Pivot resistance is noted at 19.3837, 19.4542, 19.505

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