- Mexican peso extends recovery against the dollar.
- USD / MXN falls for the third day in a row, still positive for the week.
The USD / MXN is trading at 20.04, in negative territory for the day and after falling to test 20.00. The intraday bearish bias is firm although the price has approached important support. The rises in the stock markets and expectations of monetary policy in Mexico continue to support the peso.
On Friday, the MXN is among the currencies that have risen the most in the market, although not enough to erase the weekly losses against the dollar.
Thursday’s inflation data, which was larger than expected in Mexico, generated expectations of further increases in the benchmark interest rate of the Banxico, which contributed to give strength to the Mexican peso.
Still bullish but with resistance ahead and support nearby
The rise of the USD / MXN stopped on Wednesday and Thursday at the 200-day moving average, which is passing by 20.20. That zone is key, and a daily close above it would enable a bullish extension. For now this level contained the rises and the price is approaching 20.00.
If there is an affirmation below 20.05, the short-term bullish outlook would lose moment and the level to look at would become 19.95, where the average of 20 and the 55-day average and a short-term bullish line converse. The break of that level would have that the short-term bias becomes bearish.
Technical levels
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