- Emerging currencies advance against the dollar driven by optimism in the stock markets.
- USD / MXN at the relevant support level, and at the 100-day average.
USD / MXN is falling modestly on Monday after the pair failed to sustain gains. The price fell to 20.22, reaching the lowest level since February 18. It remains around 20.25, at an important technical level, weakened by the performance of the dollar and the rise in the stock markets.
Emerging market currencies, for the most part, are appreciating against the dollar at the start of the week. The positive climate in the stock markets is being a key support. Good US data and the expectation of an economic rebound give investors encouragement.
The negative factor is the rise in the yields of the Treasury bonds, but on Monday the good mood of the markets is dominating, at least until the previous session of the American session.. The futures of the main Wall Street indices point to a rise of 0.70%.
Technical overview
The USD / MXN is testing the 20.25 / 30 support zone, which contains key levels and is also where the 100-day moving average is passing. A close clearly below would suggest further weakness ahead, which could extend to the 20.00 / 05 zone.
In case of rebounding from the current level, this could suggest some exhaustion in the rise of the Mexican peso, favoring a consolidation in the short term. Resistances can be seen at 20.50 and then 20.80, which protects at 21.00.
Technical levels
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