- Mexican peso tries to recover part of the ground lost days ago.
- The dollar with mixed results.
- USD/MXN quickly returns above 20.00 after falling to 19.98.
USD/MXN is trading around 20.05 on Monday, after falling to 19.98, the lowest level since Wednesday. The pair remains above 20.00, with some uncertainty in the short term, weakened against a dollar supported by the expectation of an adjustment by the Fed and caution in the markets.
Commodities are mixed on Monday, with oil falling but metals and others rising significantly. The stock markets mostly operate in negative, with moderate falls.
The economic calendar looks light on Monday and the US inflation data on Tuesday stands out.
On Sunday there were elections in Mexico, with a referendum to decide whether Andrés Manuel López Obrador would continue in office. More than 90% voted for continuity. Some ten million people voted, an 18% turnout.
short-term outlook
After last week’s jump, the USD/MXN was strengthened. In the very short term however, the bullish tone has lost momentum. The pair is testing the 20.00 zone and if it falls below it could extend the correction, with the next strong support at 19.90.
In the opposite direction, if it reaffirms above 20.10, the dollar could regain strength to retest 20.20, the resistance to break. Quickly above 20.25 and 20.30 appear, which are other resistances to consider. A return to above 20.30 would leave the USD/MXN with support for further gains.
Technical levels
Source: Fx Street
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