- Mexican peso advances against the dollar despite a fall in the stock markets.
- Dollar weakness exposes recent lows in USD / MXN.
USD / MXN is falling on Friday after Thursday’s rebound and is approaching recent lows just shy of 19.80. The price is at 19.82, the low of the day, after having been trading at 19.95, during the Asian session.
The decline had as its main factor the weakness of the dollar. The greenback loses ground to most of its rivals. Even emerging currencies are advancing against the dollar, led by the Russian ruble (favored by the rise in interest rates in Russia). This performance is not clouded by the drop in bags. The decline in Treasury yields is weighing more heavily. The 10-year rate is at 1.53%, close to the recent low.
Consolidation in progress, bearish risk
The USD / MXN maintains a dominant bearish bias, but to enable further lows it has to break the support at 19.70 / 75, to which 19.80 can be added in the very short term. The tone of weakness intensified after drilling 19.85 hours ago, and could lead to testing the 19.78 floor (April low).
On the contrary, if it remains below 20.00, the negative tone is expected to persist, with the possibility of an extra consolidation, between said level and 19.80. If it stands on 20.05, the dollar would be positioned to extend the bullish run. The next barrier is at 20.25 / 30.
Technical levels
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