USD / MXN rises to highs in almost two weeks near 20.40

  • Strength of the dollar and fall in the stock markets boost the USD / MXN.
  • Technical outlook begins to favor bullish tone.

The USD/MXN it rose to 20.38 amid a broad market rally in the dollar, which was also against emerging market currencies. In turn, the fall in the stock markets further weakened the demand for riskier assets.

Among emerging currencies, the Turkish lira is one of the few that manages to rise against the dollar. The greenback is favored on Wednesday by the latest economic data that showed higher than expected figures for retail sales and wholesale inflation, and also by the rise in the yields of Treasury bonds.

Technical overview

From a technical point of view, USD / MXN could not stay below 19.95, which would have favored the Mexican peso. In addition to rising, it first broke above 20.15 and is now testing levels above 20.30. A consolidation above that level would point to a bullish extension, and a test at 20.50.

The short-term bias now favors the upside. A drop below 20.15 would ease the bullish pressure. Key support can be seen at 19.90, with the break of that level pointing to a further pullback.

Technical levels

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