- USD / MXN breaks key short-term supports, seeks 19.80
- Despite the rally against the USD, the Mexican peso is far from being one of the best emerging markets.
A sharp fall in the US dollar across the board pushed the USD/MXN below 20.00. After breaking the 20.05 / 00 barrier, the price fell to 19.85, reaching the lowest level since April 29.
The USD/MXN it is testing levels below 19.90 and if it stays below it looks likely to drop to a target of 19.80. Technical indicators favor more losses at this time. The April floor at 19.75 / 80 should offer support. A break to the downside should expose the 19.50 area.
A recovery above 20.00 / 05 is needed for the dollar to ease downward pressure. Above next resistance stands at 20.15, followed by critical 20.30.
The USD / MXN is closing on Friday on a weak tone, driven by a decline in the dollar. Just a day ago, I was testing the resistance at 20.30; it is now below the 20-day moving average again.
Daily chart
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