- USD / MXN remains bearish, look at the 100-day average.
- Good tone in financial markets continues to support emerging market assets.
USD / MXN rose on Monday, but the rebound was short-lived. The cross is trading at 20.56, the lowest level since mid-November. The rise in global equity markets propping up the demand for emerging assets.
On Monday the USD / MXN had reached the 20.70 zone, but it could not be sustained and weakened. The aforementioned area is an important resistance, which if it were to close above it would alleviate the downward pressure. Above, the next is seen at 20.90, and just above is the 20-day average, which implies that if the dollar confirms at higher levels, it could extend the advance towards 21.00.
To the downside, strong USD / MXN support begins to emerge at 20.50, where the 100-day average is. Between 20.50 and 20.45 there are several horizontal levels, so it is a strong level that could favor a bullish rebound. A close below 20.45 would leave the peso ready for more gains.
The bearish tone seems to need that the bags in the world continue with optimism and that the Treasury bond market remains calm. These days, the main crossings are with limited routes, in a context of low volume due to the celebrations and holidays at the end of the year.
Normal conditions will return next week. These days, even the economic calendar is light, without an impact report.
Technical levels
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