- Mexican peso clears daily losses against the dollar.
- USD / MXN with a slight upward bias in the short term, remains lateral.
El USD/MXN went up to 19.96, reaching the highest level in six days and then undertook a pullback, which is still in effect. It operates at 19.84, now with a bearish intraday tone. It is maintained with tours in ranges, without moving away from 20.00.
In the Asian session, the better-than-expected data from China did not offer a boost to the Mexican peso. Market mood continues with a tone of caution given the advance of coronavirus cases in the world and the possibility of more restrictions on circulation, which could weigh on the economy.
On Monday the markets operate with a limited volume due to the US holiday. On Wednesday Joe Biden will assume the presidency and measures are expected from that same day. The approval of the stimulus package in Congress is not a sure event.
The climate of caution, together with a certain strength of the dollar against the main currencies, continues to put a downward limit on the USD / MXN, although the rise has not given it the strength to overcome the current range of lateralization.
The price is still unable to move away from 20.00. To the downside, a close below 19.70 would skew the odds towards an extension of the decline. in line with the dominant trend. Whereas if one were clearly above 20.20, it would put the dollar on the path to a stronger upward correction, with possible targets at 20.45 and then 20.80.
Technical levels
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