USD/MXN rebounds from two-months low, ends May sharply lower

The Mexican peso is the biggest gainer of the currency market in May.
USD/MXN rises on Friday on risk aversion, but ends week lower.

The USD/MXN dropped to 22.00 on Friday, hitting a fresh two-month low and then rebounded. Near the end of the week, it is trading at 22.25, up for the day but about to post the second weekly slide in a row and the lowest close since early March.

The rally of the Mexican peso lost momentum but it held most of its monthly gains. Among the most traded currencies, the peso has been the best performer during May.

The key driver was an improvement in market sentiment amid fiscal and monetary stimulus and the re-opening of many economies. Over the last session, sentiment deteriorated as tensions between the US and China escalated.

Is the Mexican peso rally over?

The USD/MXN dropped 8% in May and bottomed around 22.00. The decline has been significant, and it could fall further as it usually the cross makes exacerbated moves. The weekly chart shows strong support at 22.00 and below at 21.60/80, a horizontal level and also the 20-week moving average that should limit the downside.

A recovery of the USD/MXN should face resistance around 22.90 initially, and above at the 23.20 area. If the dollar consolidates above the last one, more gains seem likely.

USD/MXN

Overview
Today last price	22.1828
Today Daily Change	-0.0221
Today Daily Change %	-0.10
Today daily open	22.2049

Trends
Daily SMA20	23.5286
Daily SMA50	23.8975
Daily SMA100	21.7058
Daily SMA200	20.5227

Levels
Previous Daily High	22.4164
Previous Daily Low	22.098
Previous Weekly High	24.0472
Previous Weekly Low	22.7075
Previous Monthly High	25.7809
Previous Monthly Low	23.2825
Daily Fibonacci 38.2%	22.2196
Daily Fibonacci 61.8%	22.2948
Daily Pivot Point S1	22.0631
Daily Pivot Point S2	21.9213
Daily Pivot Point S3	21.7446
Daily Pivot Point R1	22.3815
Daily Pivot Point R2	22.5582
Daily Pivot Point R3	22.7

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