- The Mexican peso among the top performers on Tuesday across the board.
- USD / MXN falls to the lowest level since mid-February.
The USD/MXN it broke below 20.20 and bottomed at 20.14, the weakest in six weeks. It remains close to the ground, under pressure, while the Mexican peso strengthens across the board.
An improvement in risk sentiment and expectations regarding the US economy continue to support the Mexican peso which is outperforming on Tuesdays. On Wall Street, stock prices are modestly lower, hovering near recent record levels.
Falling US yields are weighing on the dollar. The 10-year yield stands at 1.66%, the lowest level since March 29. The DXY fell to 92.40, the lowest level in two weeks. The US dollar continues to retreat from the highest level in months against its main rivals.
Short-term technical outlook
A USD / MXN consolidation below the 20.25 level (horizontal support / 100-day simple moving average) would be a positive evolution of the Mexican peso, opening the door for a test of the 20.00 / 05 zone. The next support below is seen at 19.90.
A recovery above 8.30pm would ease the downward pressure. The next resistance is seen at 20.55 / 60 followed by 20.80.
Technical levels
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