The correction extends to the 21.10 area

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  • The Mexican peso rises for the third day in a row against the US dollar.
  • While below 21.30, the Mexican peso will remain strong.
  • Technical indicators continue to move south, supporting the MXN.

The USD/MXN It falls again on Wednesday, but the Mexican peso shows some signs of exhaustion. Still, as long as it is below 21.30, the pair could fall further to the 20.90 area, where the next strong support is seen.

A recovery above 9.30pm should give an indication that the downward correction may have run its course, suggesting some consolidation between 9.30pm and 9.65pm. Conversely, a break below 20.90 should strengthen the MXN outlook, exposing the next critical support located at 20.50.

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The main trend still favors the rise of the USD / MXN. Last week’s strong rally seems overblown, so the pullback that is taking place at the moment looks normal so far. The price is around 50% of the Fibonacci retracement of the last rally.

A rally above 22.00 necessitates volatility in the financial markets and a much stronger dollar. Before that level, resistance is seen at 21.60, 21.75 and 21.90.

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Daily USD / MXN chart

Technical levels

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