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Mexican peso strengthens and targets again at 19.80

  • Dollar weakness pushes USD / MXN down.
  • The recent range is maintained, now closer to the lower bound located at 19.80.

USD / MXN is falling on Wednesday and is testing the 19.80 support zone, which could trigger further lows if it gives way. The weakness of the dollar is being a key factor.

The ADP employment report favored a bearish extension of the dollar throughout the market. The figures showed a job creation of 330,000, below the 695,000 expected. This report serves as a preview for Friday’s, which includes non-farm payrolls.

After the data, the equity markets fell but so did the yields of the Treasury bonds. This put pressure on the dollar that fell to new weekly lows against several of its rivals.

In the case of USD / MXN, it fell to 19.81, and remains close to that area, which is the lower limit of the current range that has resistance below 19.95. The current lateralization has a bearish bias, but strong supports at 19.80 and 19.70. To the upside a close above 19.95, or better yet, above 20.00, it would point to more raises.

Technical levels

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