USD/MXN drops to lowest in three weeks, Mexican peso outperforming

Emerging market currencies rise sharply versus US dollar, MXN the best.
USD/MXN breaks short-term uptrend line; it could test April lows.

The Mexican peso is up sharply against the US dollar on Friday and it climbed above key technical levels suggesting it could keep rising. The greenback is weaker on the back of risk appetite.

The USD/MXN reached on Thursday the 24.50 area and then turned to the downsides. It recently bottomed at 23.55, the lowest intraday level since April 15. The move lower was driven by the decline of the dollar, and a stronger Mexican peso accreted the slide.

Equity prices in Wall Street are rising more than 1.50% on average, despite the US employment report and even after US President Trump mentioned he is having a “very hard time” with China.

Emerging market currencies are higher on Friday, with most of them adding to weekly gains. The Mexican peso is the best performer over the last five days, accumulating an increase of 3.70% versus the US dollar.

Technical Outlook

The USD/MXN broke an uptrend line, and it is testing the 23.60 area. If it consolidates sunder 23.60 more losses seem likely with a target at 23.20/25 (April lows).

The short-term outlook favours the downside in USD/MXN. A recovery above 23.70 could alleviate the bearish pressure, but the US dollar needs a close above 24.15 to favour more consolidation ahead.

USD/MXN

Overview
Today last price	23.6822
Today Daily Change	-0.3662
Today Daily Change %	-1.52
Today daily open	24.0484

Trends
Daily SMA20	24.1458
Daily SMA50	23.2765
Daily SMA100	21.0472
Daily SMA200	20.2454

Levels
Previous Daily High	24.5408
Previous Daily Low	23.9272
Previous Weekly High	25.0256
Previous Weekly Low	23.6441
Previous Monthly High	25.7809
Previous Monthly Low	23.2825
Daily Fibonacci 38.2%	24.1616
Daily Fibonacci 61.8%	24.3064
Daily Pivot Point S1	23.8035
Daily Pivot Point S2	23.5586
Daily Pivot Point S3	23.1899
Daily Pivot Point R1	24.417
Daily Pivot Point R2	24.7857
Daily Pivot Point R3	25.0306

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