USD/MXN drops below 20.20, to the lowest in six weeks
|- Mexican peso among top performers on Tuesday across the board.
- USD/MXN falls to the lowest level since mid-February.
The USD/MXN broke under 20.20 and bottomed at 20.14, the weakest in six weeks. It remains near the bottom, under pressure, as the Mexican peso strengthens across the board.
An improvement in risk sentiment and the expectations regarding the US economy continue to support the Mexican peso that is outperforming on Tuesdays. In Wall Street, equity prices are modestly lower, holding near recent record levels.
The decline in US yields is affecting the greenback. The 10-year yield stands at 1.66%, the lowest since March 29. The DXY fell to 92.40, the lowest level in two weeks. The US dollar continues to pullback from the highest level in months versus majors.
Short-term technical outlook
A consolidation of the USD/MXN under the 20.25 level (horizontal support / 100-day simple moving average) would be a positive development of the Mexican peso, opening the door for a test of the 20.00/05 area. The next support below is seen at 19.90.
A recovery back above 20.30 would alleviate the bearish pressure. The next resistance is seen at 20.55/60 followed by 20.80.
Technical levels
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