FxWirePro:USD/MXN extends gains eyes 19.500 level

• USD/MXN strengthened on  Friday as the escalating conflict between Iran and Israel and a drop in crude prices weighed on the Mexican peso.  

• Brent crude  tumbled 2.9%, after the White House announced it would postpone any decision on U.S. involvement in the Middle East conflict.

• Despite Friday’s drop to around $76.10 per barrel, Brent still logged a 4% gain for the week and an impressive 20% advance for the month.

• For major producers like Mexico, where crude represents about 8–10% of exports, these price swings are especially impactful, underpinning government revenues and influencing the nation’s trade balance.

•  Immediate resistance is located at 19.161 (38.2%fib), any close above will push the pair towards 19.418(50%fib).

• Support is seen at 18.975(SMA 9) and break below could take the pair towards 18.850(23.6%fib).

Recommendation: Good to buy around 19.100 with stop loss of 18.800 and target price of 19.500