USD/MXN drops to test 21.00 amid risk appetite

The Mexican peso and emerging market currencies rise as Wall Street soars.
USD/MXN still looking bullish; correction extends to test 21.00.

Matías Salord FXStreet

The USD/MXN is falling for the second day in a row as equity prices rise sharply in Wall Street. The cross bottomed at 20.98, the lowest level in almost a week. So far, it has been unable to confirm a break under 21.00.

The US dollar is falling against emerging market currencies on optimism across markets. The Dow Jones gains 0.91%, and the Nasdaq rises by 0.27%. In Mexico, the IPC index is up 0.59%, at the highest level since 2018.

Market participants await the outcome of a debt auction in the US. Inflation numbers for the US came in line with expectations, with the annual rate reaching 1.7%, the highest since January 2020. After the report, US yields pulled back, weakening further the greenback.

USD/MXN hovering around 21.00

For the Mexican peso to keep recovering, it needs market sentiment to remain positive. A firm break of USD/MXN under 21.00 would target the next support at 20.80. Then emerges the 20.50/55 area, a strong barrier that should contain the pair, boosting a rebound.

If the pair rises back above 21.30, the 21.50 resistance would be exposed. A daily close above would open the doors to more gains.

USD/MXN daily chart

USD/MXN

Overview
Today last price	21.0715
Today Daily Change	-0.1278
Today Daily Change %	-0.60
Today daily open	21.1993

Trends
Daily SMA20	20.5974
Daily SMA50	20.2295
Daily SMA100	20.2806
Daily SMA200	21.1605

Levels
Previous Daily High	21.5749
Previous Daily Low	21.1283
Previous Weekly High	21.4205
Previous Weekly Low	20.5519
Previous Monthly High	21.0483
Previous Monthly Low	19.8822
Daily Fibonacci 38.2%	21.2989
Daily Fibonacci 61.8%	21.4043
Daily Pivot Point S1	21.0268
Daily Pivot Point S2	20.8542
Daily Pivot Point S3	20.5802
Daily Pivot Point R1	21.4734
Daily Pivot Point R2	21.7474
Daily Pivot Point R3	21.92

Author

Matías Salord

FXStreet

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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