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USDMXN Bounces Following Disappointing US ISM Services PMI

MEXICO
  • USDMXN (+0.80%) has bounced following the below-estimate data with prices paid (59.5, -6.1pts) seeing their largest decline since May’17 to leave them at the lowest since Jun’20.
  • However, the recovery is - so far - shallow and appears to be a correction. The outlook remains bearish following recent weakness and the reversal from 19.2322, the Mar 20 high. The focus remains on the key support at 17.8981, the Mar 9 low. A breach of this level would open 17.5746, the Aug 25 2017 low.
  • Initial firm resistance does not come in until 18.7976, the Mar 24 high.

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