- The Mexican peso remains sideways against the dollar in the very short term.
- USD / MXN is trending down, looking towards the strong barrier of 20.00.
The USD / MXN rose to 20.33 in the Asian session but then changed trend and it fell to 20.16, the lowest level in two days and just above the weekly lows. The price is around 20.25, without major changes compared to the last few days, maintaining the downward bias.
The cross faces intermediate support around 20.20 that protects the key strong 20.00 zone. This level when tested generated a significant upward rebound. The raises ran out of steam and again the USD / MXN looks closely at 20.00. The firm break in this area will point to more weakness ahead.
The The downside bias will remain firm as long as the price remains below 21.70, which is where they are passing a bearish line. Breaking this would negate the downward bias. Before said level, strong resistance can be seen at 20.70, 20.85 and 21.45.
Demand for risky assets continues
Stock markets are rising modestly on Wednesday. The main Wall Street indices advance around 0.20%, which implies a recovery from negative territory in futures. Part of the rise was driven by the novelty of the Pfizer vaccine.
Stock market climate continues to be key for the Mexican peso and emerging currencies. Although in recent sessions the rises have been more limited and especially in the Mexican peso, which after being the star weeks ago, has now been slightly behind. In the last month, those that increased the most were the South African rand, the Brazilian real and the Colombian peso.
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