- Mexican peso regains ground due to a rebound in the markets.
- USD / MXN finds support above 20.55, maintains a bullish bias.
The USD / MXN fell on Monday due to a general rise in the markets and is returning to the bullish path on Tuesday, although it is still far from where it was at the start of the week. The price is around 20.70, without a clear direction in the pre-American session.
On Monday, the good tone in the markets, took the USD / MXN to 20.56, the lowest level since Thursday. On Monday, after rising to 20.78, the crossing lost momentum.
The dollar correction, along with the rebound on Wall Street, provided support for the Mexican peso. However, the rebound is still not looking enough to change the bullish bias that is still dominant. The first resistance looms at 20.75 / 80, and then 21.00 appears. In the opposite direction, below 20.50, the USD / MXN pullback could extend.
Among the requirements that seem necessary for a greater rise in the Mexican peso to find the mood of the markets. Should fears return on Wall Street, emerging market assets would be affected as well.
Traders’ eyes are still on Wall Street and the bond market, as well as analyzing how the new times of higher bond yields are impacting each emerging market. Mexico’s borrowing costs have risen significantly in recent weeks.
Technical levels
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