Created
: 2025.03.13
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/MXN Price Forecast: Resumes downside under 100-day EMA below 20.50
World FX news
Breaking news
USD/MXN Price Forecast: Resumes downside under 100-day EMA below 20.50
New
2025.03.13 14:46
2025.03.13 14:46
2025.03.13 14:46
- USD/MXN trades in positive territory around 20.20 in Thursday's early European session.
- The pair resumes its downside as the pair is below the 100-day EMA with a bearish RSI indicator.
- The first downside target to watch is the 20.10-20.00 region; the immediate resistance level emerges at 20.40.
The USD/MXN pair edges higher to near 20.20 during the early European session on Thursday, bolstered by a modest recovery of the US Dollar (USD). However, Mexico's strong external accounts, including a trade surplus and robust remittances, might boost the Mexican Peso (MXN) and create a headwind for the pair in the near term.
Technically, EUR/USD resumes its downside journey after crossing below the key 100-day Exponential Moving Average (EMA) on the daily chart. Additionally, the downward momentum is supported by the 14-day Relative Strength Index (RSI), which is located below the midline around 41.40, indicating that the path to the least resistance level is to the downside.
The initial support level for USD/MXN emerges at the 20.10-20.00 zone, representing the lower limit of the Bollinger Band and the psychological level. A breach of this level could expose 19.25, the low of October 11, 2024. Extended losses could push prices lower toward 18.60, the low of October 16, 2024.
On the upside, the first upside barrier is seen at 20.40, the high of March 11. Sustained bullish momentum could see a rally to 20.66, the upper boundary of the Bollinger Band. Further north, the next hurdle to watch is the 21.00 psychological level.
USD/MXN daily chart
Mexican Peso FAQs
The Mexican Peso (MXN) is the most traded currency among its Latin American peers. Its value is broadly determined by the performance of the Mexican economy, the country's central bank's policy, the amount of foreign investment in the country and even the levels of remittances sent by Mexicans who live abroad, particularly in the United States. Geopolitical trends can also move MXN: for example, the process of nearshoring - or the decision by some firms to relocate manufacturing capacity and supply chains closer to their home countries - is also seen as a catalyst for the Mexican currency as the country is considered a key manufacturing hub in the American continent. Another catalyst for MXN is Oil prices as Mexico is a key exporter of the commodity.
The main objective of Mexico's central bank, also known as Banxico, is to maintain inflation at low and stable levels (at or close to its target of 3%, the midpoint in a tolerance band of between 2% and 4%). To this end, the bank sets an appropriate level of interest rates. When inflation is too high, Banxico will attempt to tame it by raising interest rates, making it more expensive for households and businesses to borrow money, thus cooling demand and the overall economy. Higher interest rates are generally positive for the Mexican Peso (MXN) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken MXN.
Macroeconomic data releases are key to assess the state of the economy and can have an impact on the Mexican Peso (MXN) valuation. A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN. Not only does it attract more foreign investment but it may encourage the Bank of Mexico (Banxico) to increase interest rates, particularly if this strength comes together with elevated inflation. However, if economic data is weak, MXN is likely to depreciate.
As an emerging-market currency, the Mexican Peso (MXN) tends to strive during risk-on periods, or when investors perceive that broader market risks are low and thus are eager to engage with investments that carry a higher risk. Conversely, MXN tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.
Last updated
: 2025.03.13
Related articles
AUD/JPY Price Forecast: Seems vulnerable near 93.00; bears might aim to challenge YTD low
25 minutes agoGBP: Downside risks ahead of Budget event - ING
28 minutes agoGBP/USD to test 1.3000 in the near term - UOB Group
32 minutes agoNZD/USD Price Forecast: Tests nine-day EMA near 0.5700 with a consolidation phase
32 minutes agoUSD: Risk sentiment softer again today - ING
37 minutes agoEUR/USD: Further range trading seems likely - UOB Group
42 minutes ago
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
IEA: Global oil supply could exceed demand by around 600,000 bpd this year.
In its monthly oil market report published on Thursday, the International Energy Agency (IEA) said that "global oil supply could exceed demand by around 600,000 barrels per day (bpd) this year.
New
2025.03.13 18:15AUD/JPY Price Forecast: Seems vulnerable near 93.00; bears might aim to challenge YTD low
The AUD/JPY cross attracts fresh selling in the vicinity of the 94.00 mark, or the weekly top touched earlier this Thursday, and extends its steady intraday descent through the first half of the European session.
New
2025.03.13 18:00GBP: Downside risks ahead of Budget event - ING
ING's UK economist has published a note on the potential reset in UK-EU relationships and implications for British finances.
New
2025.03.13 17:58GBP/USD to test 1.3000 in the near term - UOB Group
Chance for Pound Sterling (GBP) to test 1.3000 vs US Dollar (USD); a clear break above this level seems unlikely.
New
2025.03.13 17:53NZD/USD Price Forecast: Tests nine-day EMA near 0.5700 with a consolidation phase
NZD/USD pulls back from its gains over the past two sessions, trading near 0.5710 during European trading hours on Thursday.
New
2025.03.13 17:53Crude oil price today: WTI price bullish at European opening
West Texas Intermediate (WTI) Oil price advances on Thursday, early in the European session.
New
2025.03.13 17:51USD: Risk sentiment softer again today - ING
The bond market had a counterintuitive reaction to yesterday's cooler-than-expected core CPI data (0.2% MoM), with the Fed's terminal rate pricing inching higher and Treasuries soft across the curve.
New
2025.03.13 17:48EUR/USD: Further range trading seems likely - UOB Group
Further Euro (EUR) range trading seems likely; slightly softened underlying tone suggests a lower range of 1.0850/1.0920.
New
2025.03.13 17:43EUR: Still lots of positives in the price - ING
After inching back below 1.090, the next leg higher for the euro may need to wait for Russia to officially agree on the 30-day truce with Ukraine.
New
2025.03.13 17:38Palladium price today: Rare metals down at the start of the European session
Platinum Group Metals (PGMs) trade with a negative tone at the beginning of Thursday, according to FXStreet data.
New
2025.03.13 17:29Disclaimer:
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.
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
