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In view of Axel Rudolph, Senior Analyst at Commerzbank, the pair is expected to face some downside pressure in the near term.

Key Quotes

USD/MXN has risen to its current June peak at 20.9612 before swiftly coming off to its 20.0474 May peak”.

“We thus believe that an interim top has been formed which is why we decided to neutralize our forecast”.

“The December peak at 19.9048 is expected to be tested this week, below which meanders the 55 day moving average at 19.5094. Together with the late May low at 19.4531 it is likely to offer support”.

“While the 19.5094/19.4531 area underpins we will retain a longer-term bullish forecast”.

“Resistance above the breached three month support line at 20.5092 sits at the recent high at 20.9612, a currently unexpected rise above which would put the November 2016 high at 21.2918 on the cards”.