- Rise in markets to help demand for emerging assets.
- USD / MXN returns below the 20-day moving average.
El USD/MXN It is trading around 20.60, in the support zone that also includes 20.50. The cross maintains a bearish bias in the short term. The rise in stocks supports demand for riskier assets, including emerging market currencies.
The dollar on Tuesday present mixed results. Gained momentum after lower-than-expected February retail sales data. Anyway, it is operating on mixed terrain.
The lack of clear direction may be due to the growing expectation for what will leave the meeting of the Federal Reserve which starts today. The decision will be known on Wednesday. Changes in monetary policy are not expected, but pronouncements on the recent rise in Treasury yields will have to be listened to. There will also be new estimates of economic variables from the FOMC staff.
Technical overview
The cross is testing the 20.50 / 60 support zone, which is a major barrier, which would be expected to continue to contain the downs. In the event of a significant close below, then the Mexican peso will be ready to extend the bullish run, with an immediate target around 20.30, before the 20.10 and 20.00 supports.
If it holds above 20.50, the USD / MXN could rebound. The first resistance of consideration can be seen at 20.75, close to the high of the day. Then it will follow 20.90 / 21.00. For now, to ease the downward pressure, the cross needs a close above 20.75, where the 20-day moving average is passing.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
