- The Mexican peso ends a two-day rally against the US dollar amid risk aversion on Wednesday.
- The USD / MXN is likely to face a consolidation before the next directional move.
- The primary trend is still bullish, but below 21.30 there could be further losses.
The USD/MXN it is falling again on Thursday, but remains far from Wednesday’s low. It bottomed out at 11.21 and then rebounded sharply, erasing most of the day’s losses. In the very short term it remains with a negative bias, still facing volatility, although it is trading quietly on Thursday.
The price is hovering around 21.30, a key technical level. A consolidation below would keep the door open for further losses, with the next support levels at 21.15 and then the strong barrier at 20.90. A break of support at 20.90 could be followed by further losses towards the uptrend line at 20.50.
On the upside, a firm recovery above 21.45 would ease the negative pressure. At the moment, there are no signs of a resumption of the primary uptrend. The USD / MXN seems to be forming a consolidation range probably between 21.15 and 21.65. Above 21.70, the 22.00 zone would be exposed.
Technical levels
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