Amid a risk-averse environment, the USD/MXN currency pair has reached a new high for the day at 17.24.

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• USD/MXN has printed a fresh day’s high at 17.24 amid a risk-aversion theme.

The pair currently trades last at 17.2495.

The previous day high was 17.2428 while the previous day low was 17.071. The daily 38.2% Fib levels comes at 17.1772, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1367, expected to provide support.

The USD/MXN pair has printed a fresh day’s high at 17.24 in the early European session. The major is in a bullish trajectory as the market sentiment is showing caution and the US Dollar Index (DXY) is trying to come out of the woods.

S&P500 futures have posted minimal losses, carry-forwarding bearish cues observed on Tuesday. The risk-aversion theme is in action as investors are worried ahead of Federal Reserve’s (Fed) chair Jerome Powell’s testimony. The US Dollar Index (DXY) has attempted a break above the consolidation formed in a range below 102.60.

Going forward, Fed Powell’s testimony will remain in focus. Fed Powell is expected to deliver hawkish guidance as core inflation in the United States is still showing persistence. Inflation in the US service sector has remained elevated and excess demand for labor than its supply indicates that more interest rate hikes are required to bring down inflation.

Apart from the Fed Powell’s testimony speech from the latest Fed nominees will also be in focus. Fed Governor Lisa Cook and vice chair Philip Jefferson have backed taming sticky inflation.

Meanwhile, headlines that China is preparing a military training facility in Cuba against the US have put investors on their toes.

On the Mexican peso front, investors are awaiting the interest rate decision by the Bank of Mexico (Banxico), which will be announced on Thursday. A poll from Reuters shows that Banxico will keep interest rates steady consecutively for the second time. Till now, the central bank has hiked interest rates to 11.25%. Investors should know that Mexican inflation has already softened to 5.84% in May than its annual peak of 8.7%.

Technical Levels: Supports and Resistances

USDMXN currently trading at 17.2477 at the time of writing. Pair opened at 17.215 and is trading with a change of 0.19 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 17.4155, 50 SMA 17.69, 100 SMA @ 18.0671 and 200 SMA @ 18.8189.

The previous day high was 17.2428 while the previous day low was 17.071. The daily 38.2% Fib levels comes at 17.1772, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1367, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 17.1098, 17.0045, 16.938
• Pivot resistance is noted at 17.2815, 17.3481, 17.4533

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