- Mexican Peso continued to appreciate in June, in the middle of the appetite for risk.
- USD/MXN confirms a break below 22.00, and it weakens more.
The USD/MXN pair reached the lowest level since March 16, to 21.56, and then rebounded modestly, the increase of the 21.80 area. Despite moving out of the bottom, the pair is on the lowest point of almost nearly two months.
The appetite for risk continues to push the USD/MXN pair to the downside. The Mexican peso rose for the fourth consecutive time against the usd. The U.S. dollar tumbled against most of its rivals, however, the yen was the worst performer, hit by the continued improvement in market sentiment.
Among the emerging market currencies, the Brazilian real is outperform, on Tuesday after Monday’s slide. Colombia is the peso also rose sharply, gaining almost 2% against the U.S. dollar.
USD/MXN: the Next target at 21: 30?
The pair is hovering around the 100-day average after trading below it for the first time since January. The bearish view remains in place, although the extreme oversold readings may warn of a correction, or a slowdown in the rally of the Mexican peso.
The next support for the pair USD/MXN amounts to 21.60, and a consolidation below would likely target to 21: 30 (horizontal support and also the 62.8% retracement of Fibonacci from the recent rally that began in March.
On the upside, a correction could find resistance at 22.00 and above, at 22: 20 (50% retracement) and 22.50 per person.