- Emerging market currencies without clear direction on Wednesday.
- Mexican peso stabilizes around 20.50.
- USD/MXN starts to form important support around 20.40.
USD/MXN is trading around 20.50, after hitting highs since Friday at 20.59. On Tuesday the cross bottomed at 20.31 before bouncing higher.
The area around 20.40 has become an important support, where the 20 and 200 day moving averages converge. A close clearly below would enable more pullback. The next support is at 20.30, followed by 20.15. In the opposite direction, the first resistance appears around 20.65/70. A close above would target 20.90 again.
Pthat to the short-term retracement, the dominant bias remains bullish, although it would lose strongly if there is a consolidation below 20.30.
In Mexico on Thursday retail sales data for May will be published and Friday will be the key day with the mid-July inflation report. The latter will be important for expectations about what Banco de México will do in the near future.
In the US, the economic data these days have been in the background and the focus is on what the Federal Reserve can do next week. A rise of 75 basis points is expected and the signals for the future will be key.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
