- The Mexican pesos has gained momentum after strong resistance.
- The USD / MXN has biased lower despite a rebound, but consolidation is likely.
The USD / MXN hit a low on Wednesday at 21.50, the lowest level since March 16, then rebounded, wiping out the losses. He is about to end the day flat, around 21.75 / 80. The Mexican peso rally found resistance at 21.50.
Emerging market currencies fell during the US session but remained buoyed by a constructive risk appetite. The Brazilian real outperformed again and the USD / BRL approached 5.0.
The greenback fell again at all levels, the DXY approaching 97.00. The dollar could remain weak while the recovery of risks continues. The US economic data arrived better than expected, but had no impact on the markets.
The USD / MXN rebound comes after three consecutive days of decline. The trend remains downward and a fall below 21.60 could increase the downward pressure. The next strong support is seen at 9:30 p.m. On the upside, the immediate resistance is at 22.05 / 10.
The sharp drop in the pair and the rebound of 21.50 may suggest further consolidation. The USD / MXN has fallen in eleven of the past twelve trading sessions, so a modest correction or consolidation appears to be late.