USD/MXN Price Analysis: New monthly highs, 21.00 back on the radar
|- USD/MXN jumps to 20.88, hitting the highest since March.
- Risk aversion weighs on the Mexican peso, also hit by technicals.
- Third consecutive gain for the USD/MXN, consolidation at higher levels likely.
The USD/MXN is rising on Wednesday for the third consecutive day. During the European session, it climbed to 20.88, reaching the highest level since March. It then pulled back and it is trading slightly above 20.65.
The Mexican peso was affected by risk aversion across global financial markets and higher US yields. If tensions persist the impulse could send USD/MXN to fresh highs and to test the 21.00/05 resistance area. A daily close above 20.80 should keep the dollar on its way to 21.00.
The chart looks clearly bullish. The correction from 20.88 alleviated the pressure. A slide back under 20.60 should see the 20.40/20.60 range back into play. While above 21.05, the next strong barrier is seen around 21.40.
USD/MXN daily chart
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