- The Mexican peso remains stable against the US dollar despite the volatility.
- USD/MXN with bearish bias, still holding above 20,852.
The USD/MXN has a short-term negative bias but needs to break the key short-term support at 20.85. A daily close below should open the door for further losses, targeting 20.70 initially. An extension below could target the 20.50 area.
So far, the Mexican peso has not been able to firmly break 20.85. It bottomed Tuesday at 20.82, the lowest level since March 4, but quickly bounced higher amid deteriorating market sentiment.
The first resistance is seen at 20.90, a downtrend line. Upstairs, a 21.00 test is expected. A break and consolidation above 21.05 would add dollar support for an extension. The next strong barrier that should cap the upside is 21.30.
The main trend remains up, but a daily close below 20.65 should change the bias to neutral. Before the FOMC meeting, with the war in Ukraine and global uncertainty, volatility will remain high.
USD/MXN daily chart
Additional technical levels
Source: Fx Street
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