USD/MXN Price Analysis: Another strong week for the Mexican peso, BRL outperforms
- USD/MXN posts third consecutive weekly decline, finds temporal support at 21.50.
- Emerging market currencies rise sharply on Friday against the US dollar, on risk appetite.
The Mexican peso reached on Friday the highest intraday level against the US dollar since mid-March and then pulled back modestly. USD/MXN managed to hold above 21.50 and near the end of the week is trading at 21.65, on its way to the lowest close in almost three months.
The pair weakened on the back of risk appetite. Global markets received another boost with US employment data, that came in above expectations. The surprise in jobs numbers was so big that it finally moved markets.
Emerging market currencies are extending weekly gains on Friday. The best performer is the Brazilian real, up by more than 6% against the US dollar from a week ago. Next in line is the Colombian peso that gained almost 5%. Latin American currencies held onto important gains despite Latin America becoming the epicentre of the coronavirus pandemic.
Technical levels
The USD/MXN resumed the downside on Friday but it failed to break under 21.50 that is the new key support. The bearish trend still shows some momentum, although technical indicators are at extreme oversold levels. The 22.00/10 area is the immediate resistance.
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.
