- USD / MXN moves away from recent lows, targeting 20.60.
- Returning below 20.45, it could leave the peso still strong.
USD / MXN is rising in the first day of 2022, and recently climbed to 20.57 the highest since Thursday. The cross remains above 20.50, with a very short-term bullish tone, driven by a generalized strength of the dollar.
At In early 2022, Treasury yields are rising significantly, pushing the dollar across the market. The final December PMI Markit data that could go unnoticed will be released shortly. The focus is on US employment data this week, with ADP on Wednesday and non-farm payrolls on Friday. Also on Wednesday will be the Federal Reserve minutes.
Technical overview
The USD / MXN is showing signs that it has hit a temporary floor. On Friday it closed positive after having marked lows in a month and a half and today it rises again, returning for now above the 100-day moving average. Immediate resistance is at 20.60 and the stronger 20.70 zone will follow.
In the opposite direction, at 20.45 is immediate support. A return below would still leave the Mexican peso strengthened, with the doors open to a new test at the 20.30 support.
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.
