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Test levels below the relevant area of ​​20.30

  • USD / MXN continues to decline, now testing levels below key support at 20.30.
  • The Mexican peso remains strong, Banxico expects to raise rates on Thursday.

The USD/MXN it falls for the third day in a row on Tuesday and fell below 20.30. If the Mexican peso remains firm below the mentioned zone, the negative tone will remain intact, with doors open to further losses, targeting 20.15.

The next critical support is around 20.13 / 18 which contains the 100 and 200 SMA. A drop below would expose 20.00.

The Mexican peso looks strong ahead of the Banxico meeting on Thursday. The central bank is forecast to raise the key rate from 4.75% to 5%, particularly after the CPI data showed a rise above 6% in the annual rate.

On the upside, USD / MXN could face resistance at 20.45. If the dollar manages to rise and stay above, the short-term outlook should favor the upside. The next resistance levels are located at 20.65 and 20.80.

Daily USD / MXN chart

Technical levels

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