- Mexican peso fails to push USD/MXN below 19.50.
- The dollar is favored by negative climate in global markets.
USD/MXN is trading in the 19.60 area, at daily highs after holding above 19.50. The dollar looks stronger on Tuesday in a climate of moderate risk aversion.
The Dow Jones is down 0.65% and the S&P is down 0.61% on Tuesday. The climate of some weakness is driving the dollar against emerging market currencies but doing so at a slow pace. The rise in the price of commodities is a factor that limits the advance of the dollar.
No power with 19.50
Dominant USD/MXM bias remains bearish. To enable further declines the Mexican peso needs to get the price below 19.50 and hold it. A close below would enable further downside. The next strong support is at 19.30.
For these hours, the pair is consolidating between 19.60 and 19.50. Above 19.60 the pair could go looking for resistance at 19.70, which is a strong barrier. Breaking this last level, the dollar would be positioned to extend the increases.
Technical levels
Source: Fx Street
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