- The improvement in risk sentiment helps emerging market assets, including the MXN.
- The bias in USD / MXN points to the upside, facing resistance at 21.00.
The USD/MXN it is trading around 20.65, moving sideways in the short term. The improvement in risk sentiment kept the upside limited on Tuesday. At the same time, the tone of caution is maintained.
The main short-term outlook is that the USD / MXN still favors to the upside. The key resistance stands at 20.75 which protects the key 21.00 level. A daily close above 21.00 would open the doors for more gains.
As long as it is above the 20.30 / 35 support, momentum will continue to favor the upside. A break to the downside would point to further strength in the Mexican peso which should lead to a test of the 20.00 / 19.90 zone.
The outlook continues to favor the US dollar which faces resistance at 9pm. Rising stock prices on Wall Street should keep USD / MXN away from 21.00. If the stocks start to decline again, a rally above 21.00 is likely.
Daily chart
Technical Levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
