USD/MXN extends slide to test the 21.00 area for the first time since March
- Mexican peso open weeks in positive note across the board.
- USD/MXN keeps falling after posting the fifth weekly decline in a row.
The Mexican peso is among the top performers of the currency market on Monday. The USD/MXN pair dropped to 21.03, reaching the lowest level in six months.
The pair continues to move with a clear bearish bias, and it has reached a strong barrier around the 21.00 area that should offer support. A break lower would clear the way to more losses, targeting 20.70.
The bearish trend remains in place in the pair and has strengthened after the break below 21.50. The greenback needs to rise back above 21.50 to alleviate the pressure. While on a wider perspective, the critical resistance is located around 22.00, a confluence of an horizontal resistance and a short-term downtrend line.
On Monday, the key drivers are risk appetite and the decline of the US dollar across the board. Also, the Mexican peso is outperforming weakening further the USD/MXN.
Technical levels
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.
