- Emerging market currencies pull back on cautious weather.
- USD/MXN with a bullish bias as long as it remains above 20.40.
USD/MXN climbed hours back to 20.52, reaching the highest level in almost a week. It then pulled back and is trading at the 20.45 area. The rises occur before a strengthening of the dollar in the market.
The greenback is rising on a fall in equity markets. The weak economic outlook weighs again, to which tensions between Chica and the United States are added.
The Mexican peso is far from being the worst performer in the group of emerging, but it does not manage to escape from the picture of general situation. After the setback of the last two weeks, the USD/MXN signals a possible floor.
Technically, in the very short term, a bullish bias is seen, which will keep open the possibilities of more rises, if it continues above 20.40. A drop below will again expose strong support at 20.20, which if broken would leave the Mexican peso poised for further declines.
If confirmed above 20.50, the USD/MXN would be expected to extend the rises, with the next resistance levels at 20.60 and 20.70.
Technical levels
Source: Fx Street
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