- The Mexican peso remains strong against the US dollar in early 2022.
- USD / MXN continues to test the 20.35 / 40 support area.
- The recovery above 20.90 would negate the bearish bias.
The USD/MXN it fell to test the December low around a little below 20.35 and then rallied above 20.40. The area around 20.35 / 40 is a key support that is avoiding further losses at the moment. The next level to watch is 20.28, a 200-day flat simple moving average and then 20.15.
On the upside, immediate resistance emerges at 20.60. A daily close above would expose the next at 20.90; if it breaks, the short-term bearish bias would be reversed.
Technical indicators are slightly skewed to the downside, particularly the key moving averages. At the same time, the USD / MXN has been falling steadily for over a month; So if it doesn’t break down firmly below 8.30pm in the short term, you may have established an intermediate bottom.
Upcoming risk events: Today Wednesday Minutes of the FOMC; Unemployment claims from the United States on Thursday, the NFP report and the CPI for Mexico on Friday.
Daily USD / MXN chart
Technical levels
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