Select Language

USD/MXN trades below the 20-DMA ahead of Fed's monetary policy decision

Breaking news

USD/MXN trades below the 20-DMA ahead of Fed's monetary policy decision

  • twitter
  • facebook
  • LINE
  • RSS

  • twitter
  • facebook
  • LINE
  • RSS
New update 2023.09.20 02:18
USD/MXN trades below the 20-DMA ahead of Fed's monetary policy decision

update 2023.09.20 02:18

  • USD/MXN down 0.37%, trading at 17.0685, as the Mexican Peso recovers some of its losses.
  • Investors turn cautious ahead of the Federal Reserve meeting, where updated economic projections are expected.
  • Preliminary data from INEGI suggests the Mexican economy likely grew 3.4% YoY in August.

The Mexican Peso (MXN) erases some of its Monday’s losses versus the Greenback (USD) and reclaims the 20-day Moving Average (DMA) despite a firm US Dollar (USD), with traders bracing for tomorrow’s US Federal Reserve’s decision. At the time of writing, the USD/MXN is trading at 17.0685, down 0.37%.

USD/MXN trades lower despite a strong US Dollar, as investors await updated economic projections from the Federal Reserve

Investor sentiment has turned negative ahead of the Fed meeting. During the last economic projections, the Fed anticipated 1% economic growth, a 4.1% unemployment rate, 3.2% PCE inflation, 3.9% core PCE inflation, and the Federal Funds Rate (FFR) peaking at 5.60%. These projections will be updated and play a crucial role in shaping the Fed’s future policy decisions.

In the meantime, housing data was revealed and came worse than expected. Housing starts slumped 11.3% last month, the lowest level since June 2020. Data for July was revised lower to show starts accelerating to a rate of 1.447 million units instead of the previously reported 1.452 million units. Meanwhile, Building Permits jumped 6.9% above the prior month’s 0.1% expansion, the most significant rise in six months.

Meanwhile, US Treasury bond yields are trading in positive territory, with the 10-year note coupon yielding 4.337% amidst a US 20-year bond auction, while the Greenback, as shown by the US Dollar Index (DXY), is firm at around 105.12.

Across the border, the Mexican economic docket revealed a poll by the Instituto Nacional de Estadisitca Geografia e Informatica (INEGI), which shows the economy likely grew 3.4% in August compared with the same month a year earlier, in a preliminary estimate from the statistics agency.

USD/MXN Price Analysis: Technical outlook

At the beginning of the week, the USD/MXN could not crack the 100-DMA at 17.2091, opening the door for a pullback, which witnessed the pair breaching the 20-DMA at 17.1075. With that said, and with price action below most Moving Averages, the exotic pair could again test the psychological 17.00 figure. However, it must challenge the 50-DMA at 17..0101 before sliding towards the figure and beyond. For a bullish resumption, the USD/MXN must reclaim the 100-DMA, followed by the 17.5000 figure.


Today last price 17.1002
Today Daily Change -0.0353
Today Daily Change % -0.21
Today daily open 17.1355
Daily SMA20 17.1046
Daily SMA50 17.0167
Daily SMA100 17.2252
Daily SMA200 17.9425
Previous Daily High 17.1825
Previous Daily Low 17.0304
Previous Weekly High 17.5959
Previous Weekly Low 17.0504
Previous Monthly High 17.4274
Previous Monthly Low 16.6945
Daily Fibonacci 38.2% 17.1244
Daily Fibonacci 61.8% 17.0885
Daily Pivot Point S1 17.0497
Daily Pivot Point S2 16.964
Daily Pivot Point S3 16.8976
Daily Pivot Point R1 17.2019
Daily Pivot Point R2 17.2683
Daily Pivot Point R3 17.354





 : 2023.09.20


Last updated

 : 2023.09.20

Related articles

Show more



Financial media


FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

GBP/USD defends the 100-day SMA ,further downside on the horizon

The GBP/USD lost ground but managed to clear losses after finding support at a daily low of 1.2615, near the 100-day Simple Moving Average (SMA) and t
update2023.08.24 05:45

USD/CHF Price Analysis: Within a narrow range, hovers around the 0.8750s area

USD/CHF has been trading within a narrow range of 0.8765 to 0.8830 for the past eight days, following a break of the 0.8600 figure. At the time of wri
update2023.08.24 06:23

Gold Price Forecast: XAU/USD closed above the 200-day SMA rising to a two-week high

In Tuesday's session, the XAU/USD Gold spot price found demand as the leading world economies showed weak economic activity figures, which fueled a de
update2023.08.24 06:39

AUD/USD bulls approach 0.6500 amid downbeat yields, risk-on mood, focus on US Durable Goods Orders

AUD/USD buyers take a breather while making rounds to 0.6480, after rising the most in three weeks the previous day. In doing so, the Aussie pair port
update2023.08.24 07:16

USD/CAD slumps as CAD gains traction; US economic slowdown in focus

The Canadian Dollar (CAD) recovered some ground against the American Dollar (USD), as seen by the USD/CAD pair, finishing Wednesday's session with los
update2023.08.24 07:34

Japan Exchange Group CEO Yamaji flags economic side effects of "too weak Yen"

Hiromi Yamaji, Chief Executive Officer of Japan Exchange Group Inc. criticized the weaker Yen while citing the receding benefits of the softer currenc
update2023.08.24 07:39

NZD/USD consolidates its recent gains above 0.5970 ahead of Jackson Hole Symposium

The NZD/USD pair consolidates its recent gain below the 0.6000 mark during the early Asian session on Thursday. The weakening of the US dollar is driv
update2023.08.24 07:45

EUR/USD rebounds from 10-week low beneath 1.0900 on Fed, ECB policy pivot concerns, US data, yields eyed

EUR/USD makes rounds to 1.0860-65 during the early hours of Thursday's Asian session as bulls take a breather after posting a stellar rebound from the
update2023.08.24 07:52

USD/JPY Price Analysis: Stumbles below 145.00 amid falling US bond yields as the pair turns bearish

USD/JPY retraced its earlier weekly gains, as the pair printed losses of 0.72% on Wednesday, courtesy of falling US bond yields, as US economic data w
update2023.08.24 07:59

GBP/USD Price Analysis: Multiple hurdles, US data prod Cable buyers above 1.2700

GBP/USD stays defensive around 1.2715-20 during the early hours of Thursday's Asian session, fading the previous day's rebound from the lowest level i
update2023.08.24 08:19


All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree