- The Mexican peso was flat against the US dollar on Monday after falling for seven days in a row.
- USD / MXN away from 22.00, up from 21.60.
- Technical indicators turn south on overbought readings.
The USD/MXN it is trading slightly lower on Monday, in what could be the end of a seven-day positive streak. Last week, the Mexican peso collapsed due to national and international developments, and the cross reached the highest intraday level at 22.15.
It retraced below 22.00, finding support around 21.65. The main trend and the bias point to the upside. In the short term, technical indicators favor some consolidation going forward as RSI and Momentum are turning south from overbought levels.
A pullback is seen initially finding support at 21.65 and below 21.50. If the price falls below 21.50, it could ease the upward pressure. Below, the next strong support is around 9pm.
On the upside, if the USD / MXN rises above 21.90, it could probably go higher to test 22.00. The next resistance zone in the medium term is 22.20 which should hold, at least on the first try. A firm break to the upside would clear the way for more gains, triggering more volatility.
Daily chart
Technical levels
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