- Risk aversion continues to push USD/MXN higher.
- The USD rises for the fourth consecutive day against the MXN.
The USD/MXN rises for the fourth consecutive day and reached 21.46, the highest level since early December. He remains near the highs, with bullish momentum intact.
The risk aversion environment in the financial markets maintains the momentum of the USD/MXN. Emerging market currencies are under pressure as equity markets fall. After posting heavy losses on Monday, the Dow Jones falls 0.52% on Tuesday.
The war in Ukraine remains the key factor. It has been reported that the Biden administration is about to announce a ban on Russian oil imports and further sanctions. Crude oil prices have risen more than 7% to the highest level since 2008.
Overbought, but who cares?
Technical indicators are showing overbought readings, but USD/MXN continues to rally with momentum. There are no signs of exhaustion at this time. Next resistance levels are seen at 21.50 and then 21.60.
On the other hand, immediate support is at 21:25, followed by 20:95/21:00. Next, the next level to watch is 20.80/85. A drop to 20.85 could be seen as a correction, while a consolidation below would negate the bullish bias.
Technical levels
Source: Fx Street
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