- Mexican peso remains firm against the dollar.
- USD / MXN falls again on the week, and could have the lowest weekly close in months.
USD / MXN fell to 19.85, matching last week’s low. After failing to break that floor, it bounced and is trading in the 19.90 zone, in negative territory for the day, but still above key support levels.
The USD / MXN negative bias remains intact and recent floors are depressed, below which it looks like 19.80 support zone. The break of that level would enable more lows. The short-term bearish tone would be canceled with a firm rise above 20.00, while above 20.10 the probabilities of further advances would increase.
The Mexican peso lost some strength after the start of the trading form on Wall Street, which led to a downward shift in equity markets and affected emerging currencies. The fall for the moment is limited.
In the week chart you can see the third consecutive weekly decline and the price in the area of the 20 and 200 week moving average. This implies that it is an important support, which if it were to yield, would point to more losses in the medium term. The downside risk prevails, but the Mexican peso needs a weekly close below 19.70.
USD / MXN week chart
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