- On a positive day for emerging market currencies, the Mexican peso dropped modestly versus the US dollar.
- USD/MXN reached fresh multi-month lows but it quickly rose back above 21.50.
The Mexican peso did not benefit from a positive tone around financial markets and fell against the US dollar. In Wall Street, the rally continued and currencies, like the Brazilian real, soared. The USD/MXN held steady after defending the 21.45/50 area.
The USD/MXN bottomed during the Asian session at 21.47, the lowest intraday since mid-March but then rebounded, rising to 21.79. Over the last hours, it has been hovering around 21.60, marginally higher for the day.
Levels to watch
From a technical perspective, the bias continues to point to the downside but in order to clear the way to more losses, USD/MXN needs to clearly break under 21.45/50. The next strong support stands at 21.30.
A failure to break in the short-term below 21.45 would point to an interim bottom. The 22.00 area is the current resistance area, above the USD/MXN correction could extend to 22.55.
More levels
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