- Short-term trend remains bearish in USD/MXN, but momentum fades.
- The US dollar is falling sharply versus majors but shows strength against emerging market currencies.
The USD/MXN pair rebounded at 22.00 and climbed to test the 22.20 area again despite the decline of the US dollar against majors. Emerging market currencies are posting mixed results reflecting some risk aversion.
The Mexican peso traded near the multi-month highs on Monday, but it reversed the trend. So far, the rebound in USD/MXN has been unable to negate the short-term bearish bias. The immediate resistance is seen at 22.25, and a break higher would alleviate the bearish tone. A daily close above 22.55 should lead to more gains.
On the flip side, now 22.00 is the immediate support of USD/MXN. Below comes the 21.85/90 area. A break lower would target the 21.45/50 support area, with intermediate support at 21.70.
USD/MXN 4-hour chart
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USD/MXN technical levels
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