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  • A 7.5-magnitude earthquake centered in Oaxaca hit Mexico, no serious damage was reported.
  • USD/MXN rose modestly, to test 22.50 but remains below.

The USD/MXN pair rose to 22.50 after an earthquake hit Mexico. As of writing, it trades at 22.45, flat for the day. Earlier on Tuesday, it peaked at 22.67, and then bottomed at 22.28, the lowest since last Thursday.

No severe damage so far, MXN steady

Mexican assets remained relatively steady after a 7.4 earthquake shook Mexico a few hours ago. The epicenter is near the city of Oaxaca. No serious damage to infrastructure or injuries have been reported.

The USD/MXN moved modestly higher and pulled back, holding practically flat for the American session. The Mexican peso is up marginally versus the US dollar.

Most emerging market currencies are up versus the greenback on Tuesday. The US dollar fell across the board amid risk appetite and broad-based weakness in USD.

USD/MXN technical analysis  

The 4-hours chart shows USD/MXN moving above an uptrend line from June lows but facing some bearish pressure in the short-term. In order the clear the way to more gains, the pair needs to break above 22.60. A consolidation above would likely be followed by a test of 23.00.

Ahead of the next session, while under 22.50, the negative bias will prevail. A firm break below 22.30 could trigger more losses, with an immediate target at 22.10 and then 21.98.