USDMXN closed Wednesday at 17.2878, down 63 pips from Monday's 17.3518 open. The pair touched 17.3984 early in the week before sliding to 17.2741, marking a 124-pip range so far.
The peso found support as broader dollar weakness emerged Tuesday. While no major Mexican data hit this week, the currency benefited from risk-on flows as markets digested China's yuan fixing and Japan's verbal intervention when AUD/USD touched 160.
The calendar shows no high-impact events for either currency through Friday. Without fresh catalysts, USDMXN will track broader dollar sentiment. If risk appetite holds, 17.2500 comes into view. If dollar bids return, the pair could retest Tuesday's 17.3610 high.
Current positioning shows 61.8% of traders long USDMXN versus 38.2% short. This bullish skew suggests many expect the dollar to recover from its midweek dip, though the peso's momentum has caught longs off guard.
USDMXN sits just above Wednesday's 17.2741 low. A break below opens the door to 17.2500. If buyers defend here, 17.3000 becomes the first resistance to clear before targeting Monday's high at 17.3984.
Byline: LHFX Research
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