- Mexican peso falls for the fourth day in a row against an increasingly strong dollar.
- USD / MXN above 21.50, tip to 21.75 where the next intermediate resistance is.
USD / MXN is rising for the fourth day in a row and is trading just below 21.60, at the highest intraday levels since early November. The strength of the dollar continues to be key to progress.
The Emerging market currencies are still under pressure and the Mexican peso is one of the most felt on Monday. Before the opening of Wall Street, the dollar gained momentum, with the advance of the yields of the Treasury bonds and advanced marking maximum in months.
The bullish rebound on Wall Street is not enough to prop up emerging markets. The lira ture is one of the worst performing with the USD / TRY climbing 1.60%, followed by the USD / MXN which rises 1.30% and then the USD / CLP 1.20% (Chilean peso).
The upward pressures, in addition to reflecting what is happening in the bond market, may be indicating that a positive growth differential is expected in the US, supported by the advance of vaccination for the coronavirus.
From a technical point of view, USD / MXN remains firm on its upside bias and appears to be targeting 21.90 / 22.00, if it affirms above 21.50. Before the mentioned target there is intermediate resistance around 21.75. The 21.00 area has now become a relevant support. The only aspect that can favor a downward correction is the speed of the recent rally. Three days ago the cross was testing 20.50.
Technical levels
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