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Key Support For USDMXN Holds For Now

MEXICO
  • The USDMXN downtrend remains firmly intact, extending on fresh seven-year lows for the pair on Wednesday. There has been a moderate uptick overnight and key support at 17.0507, the Apr 29 2016 low, is holding for now. Moving average studies remain in a bear mode position, highlighting a downtrend and we bring attention to the following support levels that may come into play next:
    • SUP 1: 16.9791 - 1.618 projection of the Feb 6 - Mar 9 - Mar 20 price swing
    • SUP 2: 16.7758 - 1.764 projection of the Feb 6 - Mar 9 - Mar 20 price swing
  • On Thursday, Mexico’s central bank releases a report on the state of regional economies during 1Q 2023. With no data releases on the local agenda, attention turns to next weeks retail sales report, mid-month CPI and Banxico meeting.

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