- The Mexican peso rises for the fourth day of the last five against the dollar.
- The dollar loses strength due to a rebound in the markets and raw materials.
- USD/MXN falls towards 20.00, with a negative outlook.
USD/MXN is falling on Monday against a backdrop of calm markets, lower Treasury yields and a rebound in commodities. The Mexican peso is trading at one-week highs and aims to test the 20.00 zone.
The strong reversal that started on Wednesday from a peak above 20.60 continues. On Monday the USD/MXN opened near 20.15 with a bearish bias. It recently broke below 20.05 and fell to 20.03, the lowest since September 23.
The price returned below the 20-day moving average and if it continues below 20.17 the bias will be negative. If it breaks 20.00, the next strong support is located in the area of 19.80. A firm return above 20.25 would be a positive factor putting USD/MXN back on track for more gains and a test of 20.45.
The Mexican peso is favored at the beginning of the week by a rise in shares on Wall Street and a drop in the yields of US Treasury bonds. In turn, raw materials recover, highlighting the advance in the Petroleum. The barrel of WTI rises more than 4%.
Technical levels
Source: Fx Street
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