- The Mexican peso remains in the zone of maximums in months against the dollar.
- Optimism in stock markets and dollar weakness weigh on the USD / MXN.
USD / MXN is trading unchanged significantly from Monday’s close at around 19.67. It previously reached 19.59, the lowest intraday level since March 2020.
Dollar weakness and optimism in stocks
The support for the Mexican peso, which keeps the USD / MXN in the zone of lows in ten months, has to do with the current weakness of the dollar and the rise in the stock markets.
Wall Street’s major indices remain near record highs, supported by optimism over vaccination and the stimulus plan from Joe Biden who will take office on Wednesday.
In the very short term, the dollar continues to show weakness although it has managed to halt the fall after the start of the American session. The word of Janet Yellen is awaited, before a Senate committee that will discuss her nomination for the position of Secretary of the Treasury.
Technical overview
After marking minimums, the Mexican peso erased the day’s gains and lost momentum. The dominant trend of the USD / MXN and the short-term direction continues to point to the downside, although for now, it cannot be clearly confirmed below 19.70, which would leave the way open at 19.45 / 50.
On the upside, the first resistance to watch is at 20.00. 20.20 appears higher and a daily close above it would anticipate greater strength for the dollar, with the possibility of extending the run to 20.65.
Technical levels
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