USD / MXN resists above 19.80, maintains bearish bias

• Most emerging markets advance against the dollar on Monday, but not the Mexican peso.
• USD / MXN maintains a downtrend, and remains below 20.00.

The USD / MXN is trading without significant changes on Monday and is located in the 19.90 zone, after having previously approached the 19.80 level, where it is the low of last week. The pair remains unchanged despite the rise of the dollar in the market, but at the same time it has not weakened due to the advance of the stock markets.

President Trump’s signing of new fiscal stimulus over the weekend gave financial markets relief. Stock markets in the world are rising on Monday, which is supportive of emerging currencies.

He volume in the markets is low and is expected to continue in this way throughout the week, which will again be limited, without operations on Friday and with an early closure on Thursday. In the US it will be a week with few economic reports, and in Mexico there will be no impact data.

The last report on the Mexican economy last week was the employment report which showed that the recovery of the labor market slowed down in November. There was a drop of 34,500 jobs. The first negative figure in six months.

From a technical point of view, USD / MXN maintains a dominant downward bias. At 19.80 there is the first support that, if given, would expose the lows of the current bear cycle around 19.70. Below the next target can be seen in the 19.45 / 50 zone. In the opposite direction, the dollar needs to rise and affirm above 20.25 to remove the downward pressures and start preparing for a more significant recovery.

Technical levels