- The Mexican peso falls for the sixth day in a row against the dollar.
- USD / MXN exceeds important technical levels and points to more rises.
The USD / MXN did not stop the bullish journey after rising steadily for a week, but accelerated it on Monday. The price broke above 20.50 and climbed to 20.71, reaching the highest level since mid-November.
Since the peak, the USD / MXN fell modestly and is trading at 20.67, having the best day so far this month, rising more than 1%. The momentum comes from the fall in the stock markets and the rise in the yields of Treasury bonds.
The Mexican peso is one of the currencies that has fallen the most in the world since the beginning of the week. The others that also fall hard are the South African rand (USD / ZAR + 1.02%) and the Russian ruble (USD / RUB + 0.80%). The global situation is particularly affecting the peso. In the month the USD / MXN rises more than 3.50%. The recent poor performance made it go to the bottom of the emerging podium considering the last twelve months.
From a technical point of view, the support above 20.50 is a factor that supports a bullish extension. The next resistance zone is around 20.70 / 80, which protects from 21.00. The short-term tone is bullish. Despite indications of overbought, there are still no signs of a downward correction. A return below 20.50 would ease the pressure to the upside. Below the next support is at 20.30.
Levels to consider
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