USD/MXN rises and moves away from 20.30, the dollar gains momentum

• Mexican peso loses strength against the dollar, and moves away from maximum in months.
• USD/MXN with support at 20.30, still with a bearish bias, but short-term signs against it.

USD/MXN is rising for the second day in a row on Wednesday, as the Mexican peso loses strength and a mixed dollar in the market. The pair trades at 20.41, far from the 20.30 zone, which is the key support that remained in place.

After marking lows in almost three months on Tuesday at 20.26, USD/MXN started a rebound that reached 20.44. On Wednesday the pair traded at 20.32 before turning higher again.

In the very short term, USD/MXN is moving with a bullish bias, with technical indicators pointing higher. The dominant trend remains down, but the Mexican peso needs to break and confirm below 20.30 to enable further gains. Below supports are seen at 20.15 and 20.00/05.

To the current bull run, faces a first resistance at 20.45, a horizontal level and where the 20-day moving average is. Then 20.55 appears, protecting the most important zone of 20.70.

The dollar is with mixed results on Wednesday. Partly weakened by the rebound in equity markets and the rise in commodities, but Treasury yields, at the highest in years, remain a significant support.

Technical levels