Forex
Mexican Peso Rallies Against US Dollar, Targets Two-Year Low
The Mexican Peso (MXN) continues to strengthen against the US Dollar (USD), nearing two-year lows. According to the latest data, USD/MXN trades at around 16.88, poised to extend its losses and challenge the April 2024 low of 16.74.
The Relative Strength Index (RSI) has deepened in bearish territory, supporting further downside risks for the pair. This suggests that the downtrend is likely to continue, with the first support area at 16.50 being a crucial milestone to watch.
If the USD/MXN breaks below 16.74, it could expose the next support level of 16.52 and eventually test the 2024 yearly low of 16.26. On the other hand, a bullish reversal would require buyers to clear the 17.00 level, potentially leading to higher prices.