- The Mexican peso has a negative bias against the US dollar.
- USD / MXN moving in a new upper range biased to the upside.
- The zone around 20.65 / 70 keeps the rise limited.
The USD/MXN it is rising on Monday after a pullback on Friday. The cross is approaching last week’s high at 20.72. More importantly, it is testing the 20.65 / 70 resistance area. A breakout to the upside should clear the way for more gains.
The bias points higher in USD / MXN. Currently, it is moving in a range between 20.45 and 20.70. A drop below 20.45 should clear the way for an extension towards 20.30. Below the net support, it is 20.13 / 18 which contains the moving average of 100 and 200.
On the upside, the 20.65 / 70 zone limited the rally so far. A daily close above 20.70 should expose the next key area of 20.85 / 90, the last defense at 21.00.
Daily USD / MXN chart