- The dollar loses strength in the run-up to the American session.
- Mexican peso remains under pressure but receives relief for these hours.
- USD/MXN has the highest close in a month, but below 19.80.
The USD/MXN is falling on Wednesday after rising for three days and after experiencing the highest daily close in a month. The pair is operating in the daily minimum zone at 19.70, before a weakened dollar in advance of the opening of Wall Street.
Despite rising against the dollar, the Mexican peso remains one of the worst performing currencies this week. USD/MXN went from near 19.00 to rally to an intraday high on Monday at 19.86. The price failed to consolidate above the important technical level of 19.80 despite having traded above it at some point in the last three days.
The outlook looks bullish for USD/MXN, but confirmation above 19.80, with a clear close above is needed to enable a bullish extension with a first target around 20.00/0. Above the next strong resistance is seen at 20.20.
Going the other way, 19.60 looms as major support, followed by 19.30. A close below the 20-day average, which is going through 19.40, could indicate a turnaround in favor of the Mexican peso.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
