- Mexican peso remains stable against the dollar with bias in favor.
- USD/MXN unable to break the support at 20.85.
- The Fed’s decision is coming, the eye is still on Ukraine.
Despite the ups and downs in the stock markets throughout the world, the USD/MXN remains stable with a downward bias. The cross is trading around 20.85, near the weekly low. For two days it has not been above 9:00 p.m.
USD/MXN continues to push against the 20.85 zone. A confirmation below would strengthen the Mexican peso, possibly leading to the 20.70 zone, where the 100 day moving average is.
If it continues above 20.85, the dollar could experience a rebound, which would just gain time to return and assert itself above 21.00. Then the next resistance is seen at 21.10, followed by 21.309.
In a longer term perspective, a weakened bullish bias can be seen with the recent drop, but that could pick up again. A drop below 20.70 could change the outlook to neutral.
The dollar shows some weakness on Tuesday, the day the Fed meeting begins. An interest rate hike of 25 basis points is expected. Said step would be followed by Banxico next week.
Technical levels
Source: Fx Street
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