- Volatility in financial markets increases, Mexican peso among the weakest.
- USD / MXN slows up at the 20-day moving average and retreats.
USD / MXN is rising on Thursday, but it moved away from the highs in the last hour before a rebound of the actions in Wall Street. The price of the dollar rose to 20.05, reaching the highest level in a week. It then pulled back and is trading around 19.93.
The advance came before a fall in the main Wall Street indices, but then rebounded in part due to the strong rally in oil prices. This took momentum from the dollar and favored the decline in the USD / MXN, which is still in positive territory compared to yesterday’s close.
The dollar was weakened after the start of the American session. US economic data released on Thursday did not help the currency. There was a strong rise in the initial requests for unemployment benefits, to highs in ten weeks.
Technical overview
The dominant trend of USD / MXN remains bearish, but the signals from the technical indicators are beginning to show some exhaustion. A close below 19.70 would give the Mexican peso momentum again, enabling a slide to the next strong support at 19.55 / 60.
In the opposite direction, the rises stopped right where the 20-day moving average is passing at 20.05. Should it stabilize above, short-term downward pressures would ease. The next strong resistance is at 20.20 and then 20.65 and 20.80. Then the eight-month downtrend line appears as a key level today at 21.30.
Technical levels
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