- Mexican peso rises against the dollar, recovering part of Tuesday’s losses.
- USD / MXN could not return above 20.00, it is still in consolidation mode.
USD / MXN is falling on Wednesday after rising to 19.99 on Tuesday, the highest level since April 15. The price operates at a minimum for the day after the opening of Wall Street. The rebound in equities boosted riskier assets, favoring the Mexican peso.
Added to this is the drop in Treasury bond yields and the rebound in oil prices, which in the last hour cut losses. All of these factors are restoring strength to the Mexican peso.
Bouncing from lows in nearly three months
On Tuesday the USD / MXN had fallen to 19.78, the lowest since January 22. From that level it started a strong rebound, but it was not strong enough to break 20.00. After approaching that area, he backed away.
The dominant trend in the USD / MXN remains bearish, but to see more losses, you have to break the strong barrier of 19.70 / 75. If this level is not possible, a continuity in the consolidation routes would be expected, possibly between 19.75 and 20.00. The upper limit can be extended to the next strong resistance which is at 20.25 / 30.
A close above 20.30 could anticipate greater strength ahead for the dollar, while if it fell below 19.70, the barrier around 19.50 would be exposed, a strong support.