March 21, 2023 19:14 GMT
USDMXN Closing In On Initial Support
- Strong evidence of the global risk rebound can be seen in emerging markets on Tuesday, where HUF (+1.96%) and MXN (+1.07%) have had the most notable rallies/recoveries against the greenback after their sharp selloffs across both last week and early on Monday’s session.
- Technically, USDMXN maintains a firmer tone following recent gains and although price is consolidating, the pair continues to trade closer to its recent highs. The 20- and 50-day EMAs have been cleared and 19.00 has recently been pierced.
- The next key short-term resistance remains at 19.2906, the Feb 6 high. A break would pave the way for strength towards the 19.50 handle and 19.5882, the Dec 30 high.
- The steady grind lower throughout today’s session has narrowed the gap with initial support of 18.5632, the 20-day EMA.