- Mexican peso remains in the area of recent highs against the dollar.
- USD / MXN retains its bearish bias, still above 20.00.
El USD/MXN it fell to 20.03, reaching the lowest intraday level since February 16. After which it bounced and is trading in the zone of highs for the day at 10.20. The cross remains in consolidation mode with a bearish bias. The advance in the stock markets, together with a weak dollar continues to support the Mexican peso.
The dollar shows mixed results against emerging market currencies. In this group, the one that is rising the most is the Russian ruble, which is rising sharply for the second day in a row. The rest of the currencies did not show significant variations. Stock market stability around record highs continues to show optimism among investors for riskier assets and supporting emerging currencies.
Later on Wednesday, the Fed’s Beige Book on the state of the economy will be published in the US and central bank president Jerome Powell will speak at the Economic Club of Washington.
Short-term outlook
From a technical point of view, USD / MXN remains bearish. To enable lower levels, the crossing must break the 20.00 zone. The immediate target below is at 19.88 (February low) and then support at 19.70 will appear on the scene.
In the opposite direction, at 20.25 is the first major barrier. A comeback above would ease the pressure to the downside. The next resistance is at 20.45 (20-day moving average) and then it follows 20.55.
Technical levels
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