USD/MXN Price Analysis: Bias still points to the upside despite the recovery of the Mexican peso
|- Improvement in risk sentiment helps emerging-market assets, including MXN.
- Bias in USD/MXN points to the upside, faces resistance at 21.00.
The USD/MXN is trading around 20.65, moving sideways in the short-term. The improvement in risk sentiment kept the upside limited on Tuesday. At the same time, a precaution tone is still.
The main short-term outlook is USD/MXN still favors the upside. The key resistance stands at 20.75 that protects the key 21.00 level. A daily close above 21.00 would open the doors to more gains.
While above the 20.30/35 support, the momentum will continue to favor the upside. A break lower would point to further strength in the Mexican peso that should lead to a test of the 20.00/19.90 area.
The outlook continues to favor the US dollar that is facing resistance at 21.00. Higher equity prices in Wall Street should keep the USD/MXN away from 21.00. If stocks start to decline again, then a rally above 21.00 looks likely.
USD/MXN daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.