- The dollar with mixed results against emerging market currencies.
- Mexican peso loses strength, but remains firm below 20.00.
The USD / MXN continues to move within a small range, although now closer to the upper limit, given a general strengthening of the dollar in the market. The price is still below 20.00, but now affirming above 19.90
Recently the USD / MXN fell to 19.90 and rebounded to 19.92, approaching the highs for the day at 19.96. In a more general perspective it is still moving within a wider range between 19.85 and 20.00.
The lateral direction of the USD / MXN remains firm and causes that the main technical indicators do not give clear signals. A return above 20.00 would be expected to pave the way for a bullish extension with a first target at 20.10. Above the next resistance is at 20.20.
In the opposite direction, a drop below 19.90 would expose the bottom of the current range at 19.85. A break at this level would clearly target 19.80 and focus attention on the 19.70 area, which is medium-term support.
The main factor continues to be the dollar, which is being strengthened in the market in the face of next week’s meeting of the Federal Reserve, and in the face of a rise in the yields of Treasury bonds. The most significant appreciation has been against the G10 currencies, but if this context continues, it could boost the USD / MXN.