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FxWirePro: USD/MXN consolidates around 20.450, maintains bullish bias

• USD/MXN strengthened on Thursday  as Mexican peso weakened after Mexican inflation data  fueled bets that Banxico  could keep cutting interest rates.

•Data showed,  Mexico's annual inflation eased to 4.21% in December from 4.55% in November, despite core CPI rising to 3.65%.

• Emerging market currencies struggled in 2024 amid concerns over higher U.S. rates and Trump’s tariff threats, with the Mexican peso particularly pressured due to its heavy reliance on U.S. trade.

• At GMT 15:45, the pair was trading up 0.20% at 20.450.

•  Immediate resistance is located at 20.545 (38.2%fib), any close above will push the pair towards 20.887(23.6%fib).

• Support is seen at 20.405(38.2%fib) and break below could take the pair towards 20.276(50%fib).

Recommendation: Good to buy  around 20.410 with stop loss of 20.200 and target price of 20.600

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