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USDMXN Maintains Downward Trajectory, Eyes 2018 Lows

MXN
  • USDMXN understandably unperturbed by the marginally softer data but remains on a solid downward trajectory, with the peso strength underpinned by a hawkish central bank.
  • The technical trend outlook remains bearish and the sustained break of key support at 18.50 emboldens the bearish theme. A fresh trend low of 18.2994 this morning placed the pair at fresh trend lows, and the lowest level since April 2018. Price action continues to narrow the gap towards more significant support at 17.9401, the 2018 lows.
  • Initial resistance levels to watch are 18.50 and then 18.6173, the 20-day EMA.

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