- Mexican peso among the best performers on Friday.
- The dollar with less strength, but remains firm.
- USD/MXN stopped by 20.30, falls to the 20-day moving average.
The USD/MXN is falling on Monday after not being able to break above the 20.30 zone and is trading around 20.13, in the zone of daily lows and where the 20-day moving average is. The negative climate in the markets is a risk factor for the Mexican peso.
The Mexican peso is among the best performing currencies among the most traded on Friday, leading the USD/MXN to retreat, unaffected for the time being by risk aversion.
TAfter the sharp drop on Thursday, the main Wall Street indices are in negative with declines of around 1.40%. Emerging market currencies slip again against the dollar, but the Mexican peso is among the exceptions. The US employment report did not have much of an impact.
If it continues below 20.30, USD/MXN will see limited gains. A break above would be a bullish sign of continuation with the focus on 20.50. Then the next resistance is at 20.70.
A rebound on Wall Street could push the Mexican currency further higher, pushing USD/MXN well below the 20-day moving average of 20.13. The next support of consideration is in the 20.00 area. A daily close clearly below would expose the April low around 19.70.
Technical levels
Source: Fx Street
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