- The Mexican peso rose against the US dollar on Monday amid an improvement in risk sentiment.
- The bias in USD / MXN continues to favor the upside; the dollar faces resistance at 21.00.
The USD/MXN it hovers around 20.65, the lowest level since Wednesday. It is correcting lower after being rejected above 9pm. The main trend in the short term continues to point to the upside. A consolidation above 21.00 is needed to clear the way for more gains. Resistance levels above could be seen at 21.10 and 21.30, ahead of the strong 21.50 barrier.
Technical indicators on the daily chart point to some consolidation going forward, with a further correction likely. The 20.50 area is the next support that should limit the downside, probably favoring a rebound.
Critical support for the bullish outlook is at 20.05, an uptrend line and also the 55-day simple moving average. A break to the downside would negate the bullish bias, leaving USD / MXN vulnerable to further losses. Intermediate support is detected at 20.30 (20-day moving average).