- Mexican peso continues to advance against the dollar and tests a key level.
- Emerging currencies rise strongly against the dollar as stocks advance.
The USD / MXN is falling in the beginning of 2021, in the face of a general weakness of the US dollar. The price fell to 19.71, the lowest level since December 9 and just above the December floor of 19.69.
The cross is trading at 19.77, after bouncing. The Mexican peso continues to press the 19.70 zone, which if it were to yield would definitely expose the next target around 19.45 / 50. On the upside, now 19.85 is the first resistance followed by 20.00.
The USD / MXN trend is still clearly bearish and will remain that way as long as it is below 21.30, through which a bearish line of several months passes. Since December the cross has moved in consolidation mode, and now pressing the floor of that range.
The decline in the USD / MXN on Monday is due to a fall in the dollar, in conjunction with a rise in world stock markets. Optimism among investors generated a demand for riskier assets, favoring emerging currencies. In this group, the Mexican peso is far from being the highest riser. The advance on Monday is being led by the Russian ruble and the Chilean peso.
Technical levels
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