- The Mexican peso fails to recover ground against the dollar.
- USD/MXN closes above the 20-day moving average and gains support.
USD/MXN is trading above 20.00 on Wednesday, validating Tuesday’s significant advance and despite the dollar’s correction against major currencies. The cross maintains a very short-term bullish bias.
aiming higher
Tuesday’s rally took USD/MXN to a near two-week high at 20.07, as well as its first close above the 20-day SMA since mid-March. The foregoing, and also considering that the cross is asserting itself above 20.00, leave the upward path with greater probabilities. The next strong resistance is seen at 20.25.
In the event of a pullback and confirmation below 19.95, the very short-term bullish tone could be invalidated. Critical support is seen at 19.75.
On Wednesday the USD/MXN operates at 20.03, with a modest rise and still unable to overcome the peak of the previous day. The price is maintained despite the fact that the dollar is correcting downwards against several of its rivals. DXY is down more than 0.50% and has one of the worst days in weeks.
The green ticket corrects after several days with rises, accompanying a rise in Treasury bonds. The trend in favor of the dollar continues, and is supported above all by the expectation of monetary tightening by the Federal Reserve.
On Wednesday afternoon, the Fed’s Beige Book on the state of the economy will be published. In Mexico, the key data for the week will be known on Friday with the inflation for the middle of the month of April.
Technical levels
Source: Fx Street
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