- The Mexican peso extends the decline against the dollar.
- USD/MXN affirms above 20.00 and the 20-day moving average.
USD/MXN resumed bullish runs on Thursday after a pause on Wednesday and climbed to 20.12, reaching the highest level since April 8. The pair remains in the area of highs with a bullish tone.
The Mexican peso remains under negative pressure against the dollar and is among the worst performers on Thursday. The dollar for its part presents mixed results. DXY has trimmed losses and returned above 100.00, although it is still in negative territory for the day.
As far as data is concerned, a smaller drop than expected in requests for unemployment benefits and a drop to historical lows in continuous ones was known in the US. The Philly Fed fell more than expected. The data contributed to some dollar weakness. In Mexico, the mid-month inflation report will be published on Friday.
Looking at 20.20
Technically the USD/MXN looks bullish in the short term, especially after confirming with two daily closings the return above the 20-day moving average and the 20.00 area. The aforementioned average is turning bullish, a positive sign for the dollar. In case of returning below 19.95, the Mexican peso would regain momentum.
If the upward trend continues, the next relevant resistance is in the area of the highs of this month near 20.20. A break above would point to more raises.
Technical levels
Source: Fx Street
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