USD/MXN stable in the 20.30 area, with an upward bias

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  • Emerging market currencies continue to have a difficult outlook due to general caution.
  • Fears about a global recession and interest rate hikes continue to leave the outlook cloudy.
  • USD/MXN remains above 20.25, with resistance at 20.45.

USD/MXN is trading flat on Monday around 20.25/30, maintaining a short-term bullish bias, after last week’s strong rally. The cautious climate in financial markets continues to weaken demand for emerging market assets. The dollar on Monday shows a slight fall, in a day of low volume as a result of the US holiday.

Technically the bias is to the upside in USD/MXN, after returning around 20.25. A return below 20.10, (20 day moving average) could turn the bias to neutral. To the upside, the next key resistance is at 20.45, which contained the rallies last week. A close above would point to more upside.

Record remittance income

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In Mexico, the key data will be published on Thursday with June inflation, which will be key for expectations about the Bank of Mexico. The annual rate could have been closer to 8%. An interesting fact is that in May, income to Mexico from remittances reached 5,712 million dollars, a record figure for a month.

In the US, the calendar ahead shows the minutes of the last Fed meeting on Wednesday, the ADP report on Thursday and the official employment report.

Technical levels

USD/MXN

Panorama
Last Price Today 20.2811
Today’s Daily Change 0.0207
Today’s Daily Change % 0.10
Today’s Daily Opening 20.2604
Trends
20 Daily SMA 20.0676
50 Daily SMA 20.0519
100 Daily SMA 20.1873
200 Daily SMA 20.4274
levels
Previous Daily High 20.4665
Previous Daily Minimum 20.0921
Previous Maximum Weekly 20.4665
Previous Weekly Minimum 19.8201
Monthly Prior Maximum 20.7028
Previous Monthly Minimum 19.4709
Daily Fibonacci 38.2% 20.3235
Daily Fibonacci 61.8% 20.2351
Daily Pivot Point S1 20.0795
Daily Pivot Point S2 19.8986
Daily Pivot Point S3 19.7051
Daily Pivot Point R1 20.4539
Daily Pivot Point R2 20.6474
Daily Pivot Point R3 20.8283

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Source: Fx Street

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