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USD / MXN falls to test weekly lows near 21.00, the dollar fails to maintain gains

  • The remote Mexican peso is bullish against the dollar.
  • USD / MXN practically unchanged for the week.

The USD / MXN is trading in the 21.20 zone, in negative territory for the day and practically unchanged from its level a week ago. The weakness of the dollar limited the increases of the cross, which after failing to exceed 21.50, fell back.

The Mexican peso is operating in tune with the rest of the market, in a week without great variations. USD / MXN hit the highest level at 21.52, as the main Wall Street indicators hit the lowest level of the week. Then with the rebound in the price of the shares, the reversal of the cross occurred.

The climate in the stock markets is still key for the Mexican peso, whose performance seems to be more determined by the negotiations between Democrats and the White House for new fiscal stimuli, than by domestic factors and the recent rise in the interest rate of Mexican bonds.

Technical overview

He USD / MXN maintains a bearish tone, especially after failing to hold above 21.50. In any case, the 21.10 / 15 zone is still an important support, which needs to be broken to enable a drop below 21.00, which would expose the September lows of 20.83.

In the opposite direction, in case the cross breaks and affirms above 21.55, a bullish extension with an initial target at 21.85 would be expected. In case of continuing to the upside, the next target is at 22.05 / 10.

Credits: Forex Street

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