- The Mexican peso maintains a bullish bias after a momentary drop on Monday.
- USD / MXN does not move away from the minimum zone in months.
The USD / MXN had an intense session on Monday and it ended up weakened, after having operated on important resistance levels. The price reached 20.65 (maximum in a month) and ended up closing below 20.00. It is trading at 20.05, with modest gains for the day and close to the December floor.
On Monday the price jumped before the dollar rose on all fronts and with the fall of the stock markets. But then the equity markets rallied and the dollar gave up much of the gains, driving the USD / MXN back below 20.00.
In this way, the USD / MXN keeps the bearish bias intact. Although to enable more lows, the price has to affirm below 19.90 and then break the support at 19.70 definitively. To the upside, a close above 20.25 would remove downward pressure. The downtrend will remain intact as long as it remains below 21.30, where a downtrend line is passing.
The dollar and the markets in general on Tuesday are showing calm and ranges. The US data had no impact on the market (GDP and Philly Fed non-manufacturing). The attention is focused in the next hours on what happens in Wall Street. In the United States, the fiscal stimulus agreement was approved and news is awaited by the Brexi.
With the end of the year holidays ahead, the volume of the markets is expected to decline, which should limit price travel. Low volume at the same time can cause unexpected events to have a magnified impact.
Levels to consider
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