- The Mexican peso remains in a favorable trend against the dollar.
- USD / MXN continues above the psychological support at 20.00.
El USD/MXN it is trading without significant changes on Wednesday, in a day without clear directions in the financial markets. The price reached the highest level of the day at 20.14 and then fell back to 20.06, where it is trading, practically at the same level where it closed on Tuesday.
The dollar presents mixed results on Wednesday. ADP employment data showed a slowdown in the pace of job creation in the labor market, but had no impact on the market. Later, the Federal Reserve’s Beige Book on the state of the economy will be published.
In general, there is some optimism in equity markets, supported by the expectation for the coronavirus vaccine.
Technical overview
The USD / MXN remains bearish outlook on the bigger picture. It is expected to continue in this way as long as it remains below 21.50, where it is passing a downtrend line. The break of it could mean that the crossing has established a floor.
In the short term, the Mexican peso continues to press against the 20.00 barrier. A confirmation below would expose the price to a bearish extension with a possible target at 19.80 and below at 19.55.
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