- Emerging market currencies trade mixed on Monday.
- Limited volume day with Wall Street closed for US holiday.
- USD/MXN maintains a bearish bias, still testing 20.30.
USD/MXN is trading around 20.30 at the same level where it closed on Friday. At the start of the week it had fallen to 20.27, the lowest intraday level since November 11, but still cannot be clearly stated below 20.30.
Keep pressed, bias intact
The USD/MXN maintains a bearish tone although it is still unable to finish breaking the 20.30 zone, which is where the 200-day moving average is also passing. In case of being able to do so, more falls would be expected with targets at 20.15 and 20.00. To the upside, a bounce could quickly go to 20.45/50. That is where the first significant barrier is found. Then will follow 20.70.
Despite the recent declines in equity markets and the rise in Treasury bond yields, the USD/MXN remained in the low zone for months, with very small rebounds, without being affected.
This is not a particular characteristic of the Mexican peso, but in general of emerging market currencies. In the event of a deterioration in market conditions, it will be difficult for this group to remain strong.
Technical levels
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