- Mexican peso recovers after a fall at the beginning of the week against the dollar.
- USD / MXN with strong support at 19.95.
The USD / MXN is falling for the fourth day in a row on Monday and is trading just above 20.00. The weakness of the dollar throughout the market favors the reversal of the cross.
Hours ago the USD / MXN had climbed to 20.16, but it changed trend and fell back towards the 20.00 zone. The rise in stocks, along with a decline in US Treasury yields, which weakened the US dollar.
Next supports at 19.95 and 20.00
In case of extending the fall, the next support is at 20.00 and just below 19.95 appears, which is where the 20- and 55-day moving average is passing. A close below this level will expose the USD / MXN to further losses, and a test at 19.80.
In the opposite direction, USD / MXN should affirm again above 20.10 to remove the very short-term negative bias. By 20.20 the 200-day moving average is passing, which is a key figure. A close above that level will point to a bullish extension.
Technical levels
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