- Mexican peso continues to defend the 20.00 area.
- The dollar with mixed results in the market, between caution and rise on Wall Street.
The USD / MXN climbed in the European session to 20.01 but was rejected from levels above 20.00 and undertook a retracement. It fell to 19.86, just above Friday’s closing level and is around 19.90, on a day without a clear direction.
Monday’s rally in the Mexican peso took place in a context of rise in the main stock indices and Wall Street futures, which reflected an improvement in investors’ mood. Anyway, everything seems with a touch of vulnerability. The operators are between optimism for the future and the adjustment of the Federal Reserve and, on the other hand, pessimism due to a slowdown that would lead to a continuity of monetary expansion.
Short-term analysis: support at 19.85
The USDMXN’s very short-term bias is to the downside. It is facing support at 19.85. A confirmation below would enable a bearish extension that could lead to 19.75, where the July lows are.
On the upside, the key level appears to be the 20.00 / 05 band. If it breaks and stands solidly above, the dollar would be positioned to prolong the bullish run, with an initial target at last week’s highs at 20.15, then next resistance appears at 20.30.
Technical levels
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