- The Mexican peso cuts losses against the US dollar, still affected by the depreciation of the Turkish lira.
- USD / MXN extends the bounce to the 20.80 / 85 resistance zone.
The USD/MXN it is up 0.35% on Monday after cutting gains in recent hours. The pair opened the week sharply higher due to the nervousness created by the depreciation of the Turkish lira. Both currencies moved away from lows.
Last week, USD / MXN found support at the critical 20.25 area, a horizontal level and also an uptrend. That area supports the short-term bullish outlook. A break to the downside would negate the outlook, pointing to a consolidation phase.
As long as it is above 20.50, USD / MXN will likely rise again to test the 20.80 / 85 resistance area that protects the next critical level seen at 21.00. Further gains above 21.00 would see resistance at 21.10 and 21.30 before the strong 21.50 barrier.
A drop during the next session below 20.50 would ease the momentum of the dollar. Further declines in USD / MXN would necessitate a positive tone on Wall Street.
Daily chart
Technical levels
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