USD / MXN falls back but remains firm above 20.00

  • Mexican peso slows recovery against the dollar after approaching 20.00.
  • Fall below 19.95, would negate the current short-term bullish bias of the USD / MXN.

The USD / MXN is trading without significant changes on Wednesday, in a day, for now, of relative calm in the financial markets. The crossing operates around 10.20, without the Mexican peso being able to send it below 20.00, but at the same time, with limited rises.

The better tone in stocks continues to be the main support for emerging market currencies, which in recent days have been the best performers, led by the lira turan. Stocks on Wall Street opened lower, but still close to recent highs. If the correction deepens, the USD / MXN could gain momentum.

US ADP employment data was better than expected, but this did not help the dollar, although it did boost Treasury yields.. The Dollar Index (DXY), which measures the performance of the greenback, especially against the euro and other large currencies, remains in the zone of maximums in months above 91.00.

From a technical point of view, USD / MXN is correcting lower after rising at the close of last week. There is still some bullish tone on the phone, which would be negated with a retracement below 20.00 / 19.95, where horizontal support levels and the 20 and 50 day moving averages converge. The latter are about to cross and the 50-day one is about to start to go up. A return above 20.40 would give the dollar a boost.

Technical levels

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