Beyond 19.50, the lowest level in two weeks, the USD/MXN continued to decline.

The Mexican Peso gains ground against the US Dollar after breaking a crucial technical level.
While US data matched predictions, Mexican activity remained flat in October.
The USD/MXN dipped under 19.50 for the first time since December 5 and quickly dropped lower, reaching 19.40. As the US Dollar experienced mixed outcomes on Friday, the pair is still under pressure and close to its low.

According to US economic data, the Core Personal Consumption Expenditure Price Index increased 0.2% in November, as predicted. A different report revealed that, contrary to expectations of a 0.6% decline, Durable Goods Orders fell by 2.1%. The US Dollar was not much impacted by the numbers.

Contrary to predictions of a 0.3% increase, the Economic Activity index in Mexico remained unchanged in October. The index increased by 4.40% from a year earlier. On Thursday, the headline inflation rate increased after six straight declines (from 7.46% to 7.77%) but the core rate decreased (8.37% to 8.35%).

Levels to observe

 

The USD/MXN is now more exposed to further losses due to the consolidation below 19.70. The 19.50 support level was recently broken, and the price dropped as low as 19.40. With the next important support at 19.30, the next barrier is 19.60, and a surge above it would strengthen the US dollar.

USD/MXN daily chart