USD / MXN rises to test recent highs, targeting 21.00

  • Mixed results for emerging market currencies against the dollar.
  • US stocks slightly rebounding, but still cautious.

USD / MXN gained momentum in the last hour and climbed to test the key resistance at 20.85, after rebounding strongly at 20.65. The cross maintains a bullish tone, in line with a caution among investors, which is manifested in a greater demand for these safe-haven asset sessions.

The economic data dand the US who met on Wednesday were below expectations (PMI Markit and Durable Goods Orders). They were largely ignored by the market.

In Mexico the key data was that of mid-March inflation, which showed higher than expected numbers with an increase of 0.53% in the main index and 0.35% in the underlying one. Both above expectations.

Technical overview

El USD/MXN it is trading on a bullish bias and is testing resistance at 20.80 / 85, which if broken would pave the way for a return above 21.00. Por above said level, then resistance at 21.10 and 21.30 will follow, before the most important one at the 21.50 area.

A drop below 20.60 would ease current upward pressures. Below is the support at 20.50 and then last week’s low around 20.25. A fall below this last zone would point to a possible short-term ceiling.

Technical levels

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