The Mexican peso reaches weekly highs, tests 20.00 before Banxico

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  • The Mexican central bank was expected to keep rates unchanged, aggressive bias.
  • USD / MXN with bearish momentum, unclear trend.

USD / MXN bottomed Thursday at 20.00, the lowest level in a week, and then rebounded modestly. The 20.00 zone remains under pressure. It is critical support and is close to the 20- and 55-day simple moving average. A consolidation below 19.95 would point to greater strength for the Mexican peso.

The dollar falls for the fourth consecutive day before the Bank of Mexico’s decision. No changes are expected, but the statement could have an impact on the MXN.

Despite the ongoing decline, technical indicators in USD / MXN, such as the daily RSI, are not yet at extreme levels, suggesting that it could fall further. The 20.00 zone is a barrier that could trigger a rebound. On the upside, resistance is seen at 20.25, a horizontal level, and also the 100-day moving average. Above the downward pressure would ease.

Daily chart

Technical levels

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