USD / MXN: The Mexican peso remains firm below 21.50

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  • Mexican peso remains firm near the highs of the month against the dollar.
  • USD / MXN cannot sustain above 21.40.

He USD / MXN is falling modestly on Wednesday after the rally met resistance before hitting 21.50. There change of direction and fell to 21.25, marking a new low for the day. It is trading around 9.30pm.

Like exchanges and most currency market crosses, USD / MXN is moving sideways on Wednesday, if a clear direction. The dollar presents mixed results, although in the last hours weakness predominated, which if it persists should weaken the USD / MXN.

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Data from the United States showed a higher than expected rise in wholesale inflation in September but that did nothing to strengthen the dollar. Now the focus is on the presentation of corporate results and on the words of Federal Reserve officials.

Technical overview

In case of spreading weakness, USD / MXN will face the support at 21.20, which protects at 21.10 (October low). Below, a test at 20.90 would be expected.

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On the upside, the dollar is having a hard time staying above 21.35 and runs are running out of steam around 21.45. A confirmation above 21.40 would anticipate more rises ahead and a test at 21.55.

The volatility in USD / MXN remains low which favors stability and contributes to the firmness that the Mexican peso is showing.

Credits: Forex Street

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