- The Mexican peso is among the worst performers on Monday.
- The USD / MXN rises after three consecutive daily declines.
The USD/MXN posted the lowest close since mid-November on Friday. On Monday the pair is rallying ending a three-day negative streak. The bounce is a normal correction so far, as the bias continues to point to the downside.
The Mexican peso remains unable to benefit from a weaker dollar on Monday amid a rally on Wall Street and in commodities. WTI is up 1.20% above $ 74.50, gold and silver are trading at weekly highs, and SP500 is up 0.75% at a new high.
The improvement in risk sentiment should weaken the USD / MXN, but this is not the case at the beginning of the last week of 2021. No relevant economic reports are expected for the next few days.
Short term outlook
From a technical perspective, the bearish bias still prevails. USD / MXN has strong support around 20.45 / 50, a horizontal level, and also the 100-day simple moving average. A break to the downside should add more negative pressure to the pair.
On the upside, immediate resistance sits around 20.70 followed by the 20.90 region. Then comes 21.00, where the 20-day simple moving average is located. A daily close above should be a positive development for the dollar.
Technical levels
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