- The Mexican peso continues to recover ground, now favored by a rebound in markets.
- USD / MXN tests levels below the 21.30 support.
The USD / MXN is falling for the third day in a row and continues to decline after trading last week above 22.00. It recently fell to 21.24, the lowest level in a week and remains close to that level, with a bearish tone.
The decline in the pair is being driven by a recovery of the Mexican peso on all fronts and by some weakness of the dollar throughout the market. In turn, the rebound in equity markets on Wednesday is being another positive factor. In any case, the dollar closed with November with a gain of more than 4%.
Technical overview
The USD / MXN maintains a bearish tone in the very short term, even though several technical indicators are already at extreme oversold levels for several sessions. There are no signs of a consolidation yet. In fact, the break below 21.30, if it continues, will open the way to lower lows. The next support is at 21.15 and underneath a stronger one at 20.90.
The dominant trend continues to rise, although the dollar to regain strength must regain 21.30. The next resistance is at 21.60. A comeback above 21.60 would reinforce the bullish bias, shifting focus to the next resistance at 21.90.
Technical levels
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