- The Mexican peso is making up some lost ground against the US dollar after falling to the lowest since March.
- USD / MXN was flat Thursday after a pullback from 20.62.
The USD/MXN It peaked at 20.62 on Thursday, the highest intraday level since late March. It then fell back amid falling US yields and despite risk aversion. The pair fell back below 20.50, and hovers around 20.35, modestly lower for the day about to post the first negative close since last Thursday.
The outlook now points to the upside, but the USD / MXN rally requires some caution. While below 20.50, the odds of further gains appear limited. A close above the mentioned level would expose the next resistance seen at 20.60, followed by 20.80 / 85.
The daily RSI is approaching the 70 zone, suggesting some consolidation before another potential leg to the upside. The USD / MXN could trade between the 100-day moving average at 20.25 and 20.55. A drop below 19.95 would negate any bullish bias, favoring further losses in the future.
Daily USD / MXN chart
Technical levels
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