- The Mexican peso has the best day against the dollar in two weeks.
- The green ticket corrects downwards after rising for several days in a row.
- USD/MXN failed to assert itself above 20.50.
USD/MXN is trading at 20.33, having fallen to 20.28, the lowest level since Tuesday. The pullback comes after hitting 20.63 on Thursday, the intraday high in a month.
The key factor behind the USD/MXN decline is the dollar’s weakness on Friday. The greenback is correcting lower on almost all fronts after rising steadily for several days. The dollar index (DXY) had come close to 104.00, the highest since 2002, and on Friday trades at 103.20, down 0.43%.
In the last hours the dollar cut losses against the main currencies, but not against the Mexican peso. US March Personal Income and Expenditure data above expectations helped the greenback.
Technically, the USD/MXN could not assert itself above 20.50, which would have implied the breaking of important resistance and in addition to the 200-day moving average. This area has slowed progress for the time being.
USD/MXN bearish correction could extend to 20.20. Between said level and 20.15 there are several supports that could contain the losses and favor a rebound to the upside, or even be seen as a good price to make repurchases. By falling below, the 20-day moving average at 20.05 would be exposed.
Technical levels
Source: Fx Street
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