The Mexican Peso is strengthening as risk appetite improves. Recent mixed US data is dispelling fears of a hard landing for the US economy. Political risk remains a negative background factor for the Peso. The Mexican Peso trades higher in its key pairs on Wednesday amid a cautiously optimistic market mood.
Technical Analysis: USD/MXN extends leg higher within rising channel USD/MXN is moving up within a rising channel and the established uptrend favors longs over shorts. The pair has broken above a key high that was capping upside at 19.52 , giving further impetus to the uptrend. A break above 19.80 would confirm more gains towards the upper channel line in the 20.60s. USD/MXN 4-hour Chart The Relative Strength Index has just exited overbought and fallen back into neutral territory.