USD/MXN drops back to 20.00 as the Dow Jones rises above 30,000


  • US stocks rise sharply, Dow Jones at record highs above 30,000.
  • The Mexican peso is the top performer among emerging market currencies.

The USD/MXN is falling on Tuesday after a short-lived rebound on Monday. It is about to test the 20.00 area again. On Monday it bottomed at 19.97, the lowest level since March before rebounding toward 20.20. It remains under pressure on the back of risk appetite.

The Dow Jones just climbed above 30,000 for the first time; it is up by 1.60% boosted by several factors: developments around the COVID-19 vaccine, the begin of the official transition in the US from Trump’s administration to Biden and US economic data.

In Mexico, bond yields dropped over the last weeks to the lowest since March, and inflation data released on Tuesday showed a slowdown during the first half of November. All positive news that contributes to boosting the Mexican peso.

From a technical perspective, USD/MXN remains bearish and is testing the psychological 20.00 area. A break lower should lead to more losses targeting 19.75 and then 19.55.

The bearish bias in USD/MXN will likely hold as long as it remains under the 21.45/55 area (downtrend line and horizontal resistance). The immediate resistance is seen at 20.20, followed by 20.44 and 20.68.

Technical levels

USD/MXN

Overview
Today last price 20.0147
Today Daily Change -0.1504
Today Daily Change % -0.75
Today daily open 20.1651
 
Trends
Daily SMA20 20.6649
Daily SMA50 21.1475
Daily SMA100 21.6399
Daily SMA200 22.161
 
Levels
Previous Daily High 20.1861
Previous Daily Low 19.948
Previous Weekly High 20.4386
Previous Weekly Low 20.052
Previous Monthly High 22.1344
Previous Monthly Low 20.831
Daily Fibonacci 38.2% 20.0952
Daily Fibonacci 61.8% 20.039
Daily Pivot Point S1 20.0134
Daily Pivot Point S2 19.8617
Daily Pivot Point S3 19.7753
Daily Pivot Point R1 20.2514
Daily Pivot Point R2 20.3378
Daily Pivot Point R3 20.4895

 

 

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