USD/MXN gains momentum and approaches monthly high above 22.50

• Mexican peso turns negative despite Wall Street gains.
• USD/MXN up for the sixth time out of the last seven trading days.

The USD/MXN turned to the upside after the beginning of the American session and climbed to 22.64 hitting a fresh daily high. It remains near the daily high and also slightly below the one-month high it reached last week at 22.70.

From a technical perspective, the USD/MXN strengthened after rising back above 22.50. The bias continues to point to the upside and a break above 22.70 would expose 22.95. On the downside, 22.30 is again a support level to watch followed by the 50-day moving average at 21.95.

The US dollar is posting mixed results. It is mostly lower versus G10 currencies. The worst performer is the Turkish lira that fell to new all-time lows. The Russian ruble is also under pressure. Over the last five trading days, the USD/MXN gained 4.35%, one of the biggest gainers across the globe.

Precaution continues to drive investors in emerging markets. In Wall Street, main indexes are rising by more than 1.25%. On Tuesday, the first US presidential debate between Trump and Biden will take place. The Mexican peso is exposed to US politics.

Technical levels