- Mexican peso under pressure amid risk aversion in financial markets.
- USD / MXN breaks the 21.00 area, reaffirms the bullish outlook.
The USD/MXN it broke above 21.00 and continued to climb. It peaked at 21.41 before falling back to the 21.25 area. The rally reinforced the bullish outlook. It is currently hovering in a technical area, and a close above 21.30 would suggest momentum remains strong, even despite overbought readings.
The movement of the highs suggests the possibility of some consolidation before another movement. With sharp moves on Wall Street, the week might not be over. Furthermore, the correction of the US dollar profit-taking does not look favorable to continue at this time.
Above 21.35, USD / MXN could head towards the next target seen at 21.50. The 21.45 / 50 zone is a relevant resistance that could limit further gains, favoring some correction. If the bullish movement continues, there is not much protection towards 22.00; an interim resistance is observed around 21.75.
On the other hand, a correction could find support at 10.21 and then 21.00. A relevant level is still 20.60: a decline below it would ease the downward pressure.
Daily chart
Technical levels
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