- The Mexican peso surpassed on Wednesday after the US elections, benefited by the appetite for risk.
- USD / MXN tries to break out of the 19.70 support area.
He USD/MXN It is falling on Wednesday due to the weak US dollar as US stocks hit new all-time highs. The Mexican peso is performing better among emerging market currencies, pushing the pair further lower.
After testing the support at 19.70 for days, USD / MXN fell clearly below reaching, at time of writing, at 19.65 the lowest level since March. If it consolidates below 19.70, it would clear the way for further losses, targeting the next support at 19.45 / 50. Below the next target is seen at 19.35.
If the USD / MXN recovers and rises above 19.70 again, it is likely to continue trading in the 20.20 / 19.70 range. A daily close above 20.20 (50-day moving average) is likely to point to a more pronounced recovery in the dollar.
The current bearish movements in the pair are in line with the main trend, so it seems likely that there will be more losses in the medium term. A drop to levels near 19.00 in January should not be ruled out as long as it remains below the 50 SMA.
Technical levels
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