USD/MXN unable to recover 19.20, drops toward 19.10
- Mexican peso turns positive against US Dollar after trading most of the day in negative.
- USD/MXN remains biased to the downside, but above key support levels.
The USD/MXN is falling modestly on Wednesday after being unable to hold to gains. It peaked near 19.20 but then pulled back and as of writing trades at 19.10, down three cents for the day.
The Mexican peso recovered ground after falling during the Asian and European sessions. The improvement in market sentiment and a mixed US Dollar contributed to the retreat of USD/MXN.
The Mexican Peso remains strong, unaffected by the recent turmoil in Sinaloa, and despite all that is going in Latin America with riots in Chile and Ecuador and ahead of presidential elections in Argentina. The Brazilian Real is the best performer in the region following the approval of the pension reform.
Levels to watch
The pair is biased to the downside but it reached an area of key supports. At 19.10 there is a short-term horizontal and below around 19.05, an uptrend line from 2017. A consolidation below 19.05 would clear the way to more losses, with a potential target around year-to-day lows at 18.74.
On the upside, every recovery has been short-lived showing that the US Dollar still lacks of strength. If it manages to hold on top of 19.20 it would remove some of the bearish pressure while above 19.30, the outlook would start to favor the upside.