- Mexican peso falls against the dollar but maintains the trend in favor.
- Stock markets regain strength and hold back the strength of the dollar.
USD / MXN is rising on Monday after having the lowest daily close since March on Friday. This operating at around 19.83, after having reached 19.97 hours ago.
The price reached a peak in European hours, driven by a rally of the dollar before a fall in the stock markets throughout the world. In the last hours, the equity markets cut losses, and the dollar lost momentum. The Dollar Index (DXY) had hit 91.22 and is testing 91.00, still in positive territory but far from the peak.
The greenback shows mixed results against emerging markets. With no relevant US economic data ahead, the focus for traders will be on what’s going on on Wall Street.
Mexico: Proposal for Banxico
López Obrador, president of Mexico, announced on Monday that proposed to Galia Borja Gómez, to replace Javier Guzmán Calafell on the Board of Governors of Banco de México. He also announced changes in areas related to the economy and the institute of statistics. The impact on the market was not significant at the moment. These appointments have yet to be ratified by the Senate.
Technical overview
The dominant trend of USD / MXN is bearish. The current support zone is seen at 19.75. A confirmation below would enable a bearish extension towards 19.50 / 55. In the opposite direction, the first strong resistance is near 20.00 and then 20.20. Just after a break of 21.40, where a bearish line is passing, the bearish outlook could be negated.
Technical levels
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