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USD/MXN: Consolidating above 22.00, Mexican peso steady looking at Wall Street

  • Mexican peso flat versus US dollar on Wednesday amid low volatility.
  • USD/MXN maintains a strong (inverse) correlation with Wall Street indexes.

The USD/MXN is hovering around 22.30, flat for the day after moving in a small range. It peaked during the Asian session at 22.47 and bottomed later at 22.15, on a quiet session across financial markets.

The greenback posted mixed results against emerging and commodity currencies. In Wall Street, near the end of the session, the Dow Jones is down 0.30%, and the Nasdaq gains 0.39%. Optimism about the reopening of the economy across the globe is being offset by geopolitical concerns and the increase in COVID-19 cases in southern US states and Latin America.

The correlation between the USD/MXN and Wall Street indexes is high at the moment. The sharp bounce from the 21.50 area to 22.95 took place when equity markets tumbled. The rebound that followed pushed the Mexican peso to the upside. As long as it remains the case, the direction of USD/MXN will likely be determined by US stocks.

From a technical perspective, the pair is consolidating around the 20-day moving average. On the downside, two critical supports emerge at 21.90 and 21.45/50 (June low). On the upside, above 22.50, the June high slightly below 23.00 could be revisited.

USD/MXN

Overview
Today last price22.268
Today Daily Change-0.0581
Today Daily Change %-0.26
Today daily open22.3261
 
Trends
Daily SMA2022.2093
Daily SMA5023.3221
Daily SMA10022.1269
Daily SMA20020.6615
 
Levels
Previous Daily High22.3951
Previous Daily Low21.8925
Previous Weekly High22.9514
Previous Weekly Low21.4609
Previous Monthly High24.8895
Previous Monthly Low22.0047
Daily Fibonacci 38.2%22.2031
Daily Fibonacci 61.8%22.0845
Daily Pivot Point S122.014
Daily Pivot Point S221.702
Daily Pivot Point S321.5115
Daily Pivot Point R122.5166
Daily Pivot Point R222.7071
Daily Pivot Point R323.0192

Author

Matías Salord

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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