- The Mexican peso is among the best performers on the last day of the year and the best in December.
- USD / MXN extends decline after breaking below 20.45.
The USD/MXN it is trading at 20.34, the lowest level since Nov. 10, falling for the fourth day in a row. The Mexican peso strengthened across the board in the last week of the year and pushed the cross even lower.
Technical factors also contribute to the decline, first with the breakout of an uptrend line and then sliding below the 20.45 / 50 support area. Now USD / MXN is looking at the 200-day simple moving average that it expects at 20.27.
An improvement in market sentiment in global financial markets helped the MXN. The currency had the best performance in December and is about to end the year with small losses against the US dollar.
The short-term outlook continues to favor the downside, although the daily RSI is approaching 30. So far, there are no signs of a correction zone. The area around 20.25 / 30 should limit the downside and could trigger a bounce to 20.45. If it breaks below, the next support at 20.10 would be exposed.
To remove the negative bias, the dollar must rise above 20.90. Before that level, resistance levels are seen at 20.50 and 20.71.
Daily chart
Technical levels
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