- The Mexican peso remains firm against the dollar.
- USD / MXN above 20.00, but with resistance below 20.35.
USD / MXN is trading around 20.20, unchanged significantly from Tuesday’s close. It is without a clear direction, with the Mexican peso validating the gains of the previous two weeks.
The good climate in equity markets continues to be a key support for emerging markets, including the Mexican peso. In turn, on Wednesday there is a fall in the yields of Treasury bonds, which limited the strength of the dollar.
The greenback is with mixed results on Wednesday. The durable goods order report for September was better than expected but the details were not entirely positive. Thursday will be the turn of the GDP data for the third quarter of the US, before the FOMC meeting next week.
Technical overview
The USD / MXN remains in consolidation mode, which has been in force since the beginning of the week and was to be expected after the sharp drop from 20.92. The cross has a support at the bottom of the range at 20.10 / 15, while on the upside the top is at 20.30 / 35. Departing from this range could offer directional tours. At the moment the signs are not clear.
The current bias in the USD / MXN favors declines, but for this scenario to materialize, it should clearly break 20.10. The next relevant support is then at 19.97. To the upside, above 20.35 the dollar would regain strength, but only above 20.45, would it be positioned for more rises or for a new consolidation at higher levels.
Technical levels
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