- Mexican peso remains in consolidation mode against the dollar.
- USD / MXN remains in a limited range at 19.90 and with support at 19.75.
The The Mexican peso remains firm against the dollar, even on Tuesday, as the greenback appreciates against most currencies. The USD / MXN continues to trade sideways, below 20.00, and validating the sharp fall of days ago.
The bias remains bearish in USD / MXN after the crash, although considering what the move was, the current consolidation implies a necessary respite. The price remains between 19.75 and 19.90. For the very short-term downward pressures to subside, the cross should exceed 19.90 and better if it affirms above 20.05. In the opposite direction, the break at 19.70 could lead to further declines. In a broader perspective, a weekly close below 19.75 would be a sign of bearish continuity for the USD / MXN.
The The Mexican peso continues to be among the best performing in the world in recent days, strengthened especially after the rise in interest rates by the Bank of Mexico. It did so unexpectedly and is now expected to be followed by further increases.
The negative bias of the USD / MXN faces as risks ahead a possible reversal in the equity markets and in the case of Tuesday in particular, the strength that the dollar is showing. The dollar index is at weekly highs, above 92.00 and begins to look at the peak it reached after the Federal Reserve meeting.
Technical levels
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