- Mexican peso falls against the dollar after two days of rises.
- USD / MXN maintains a bullish bias but limited by 20.80.
USD / MXN is rising on Monday and failing to favor after the bullish rebound on Wall Street. The price is at 20.70 / 75, climbing 0.70% so far this day. The Mexican peso is among the worst performing currencies throughout the market at the start of the week.
The dollar shows mixed results but has been accelerating to the upside after the beginning of the American session. This put a brake on the retracement of the USD / MXN, which had moved away from the high of the day that it reached at 20.78.
In Mexico, the president Andrés Manuel López Obrador, After the reform of the electricity system, he now sent a bill to Congress to change the hydrocarbon law. This would give the state oil company Pemex more control over the domestic market. This action takes place two months before the midterm elections.
This project may have a negative impact on investment growth prospects, as it is a further setback for the country’s private energy sector. AMLO’s nationalist signals for now have had a limited impact on the Mexican peso.
Short-term outlook
The USD / MXN maintains a bullish underlying tone, but faces a strong barrier at the 20.80 / 85 zone. That level of being broken will enable a bullish extension that should lead to testing 21.00. As long as it remains below 20.80, the dollar will remain limited. Key support to watch is 20.50 / 60, which would be expected to continue to contain the downs. A close below would jeopardize the short-term bullish bias.
Technical levels
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