- Mexican peso erases daily losses against the dollar.
- USD/MXN maintains short-term negative bias, could test 19.80 again.
The USD/MXN continues with a bearish bias and with its sights set on the 19.80 support, which if it gives way would point to further weakness for the dollar from a technical point of view. In another aspect, it is key for the Mexican peso to continue the good tone in the equity markets.
The mix of US economic data, corporate results and the expectation that the Federal Reserve could announce a rate of interest rate hikes lower than the current one after the November meeting, are playing against the dollar and therefore therefore, they contribute to keeping the USD/MXN in a bearish tone.
The Mexican peso it is far from being one of the most favored currencies these days, and is losing ground against other emerging market ones. But if we take into account the last twelve months, it is among the best.
Should USD/MXN break down and firm below 19.80, the next target is at 19.70 and then the 19.50 medium-term level will appear on the radar. In the opposite direction, now 19.95 is the first resistance. If confirmed above, the downward pressure would be relieved. The key level is the 20.15/20 area, which if broken would change the bias to bullish, and clear the way for more rallies.
Technical levels
Source: Fx Street
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