Mexican Peso had a bad time against the Dollar in the last week. The news about the new head of the central bank may have been light the fuse of USDMXN. USDTRY’s massive surge is putting other EM currencies under pressure while FED is getting more hawkish every other day. All the fundamentals point upwards and now technicals are too turning bullish.
USDMXN break the key resistance, 21.50 last week, and now trying to settle above it. The chart looks like a foundation of cup or cup &handle formation is set up between 19.50 and 25.50. If that is the case USDMXN may rise to over 30 in the long run with a successful formation and target. For more short to medium-term outlook, ıf the price can hold above 21.50, the middle point of the Covid-19 fall 22.67, and %61.8 (23.40) can be possible targets for bullish runs. Below 21.50, 20.80, and 21 can be followed as possible supports.