- Mexican peso recovers part of the ground lost before it rises in the bags.
- USD / MXN points to more gains in the short term.
USD / MXN is falling on Monday after climbing strongly on Friday when it reached 20.60, the highest level in a month. The price fell back to find support at 20.25 and has stabilized around 20.35.
The The Mexican peso and emerging market currencies are regaining ground, after falling on Friday, when equity assets fell sharply. On Monday the tone in the markets looks better and contributes to reduce the strength of the greenback against emerging currencies, against the rest of the currencies, the dollar rises again modestly.
Aiming higher
While USD / MXN is falling, the chart is still looking higher in the short term. A dip below 20.15 would ease the rally while key support is at 19.95, where the 20- and 50-day simple moving averages converge, slowly beginning to turn higher. If this change is confirmed, one could look at the 19.55 zone, where the January lows are, as an established floor.
The dollar needs to regain 20.50 first and then the next strong resistance zone is at 20.70. The 20.45 / 50 level is also important because there is an eight-month downtrend line that is offering resistance.
Technical levels
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