- Mexican peso continues to be supported by the best mood in the markets.
- USD / MXN with the very short-term bearish tone, remains on key support.
The USD / MXN on Tuesday fell to 20.00, the lowest level in nearly two weeks, then rebounded to the 20.15 area. The cross is trading at 20.10, moving sideways, with a very short-term bearish tone, but still with strong support.
The dollar loses ground on Wednesday against most emerging market currencies as global equity markets continue to rally. The major Wall Street indices are again at record highs.
In the emerging group, the Mexican peso is behind on Wednesday. This may be due to the proximity of the USD / MXN to the 20.00 zone. This support is key, since key moving averages and a horizontal support converge there. The breakdown and confirmation below would point to further losses. While to continue above it could give a bullish rebound. The first resistance is seen at 20.15. Then the next resistances are seen at 20.25 and the strong one at 20.50.
Thursday in Mexico, the central bank will announce the monetary policy decision. The expectation varies between no change in the reference interest rate and a cut of 25 basis points, which would remain at 4%. The inflation data for January, which was higher than expected, raised doubts about Banxico’s decision.
Technical levels
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