The Mexican Peso edges up on Monday as the market mood remains positive following US and Chinese data. The Mexican economy continues to expand despite restrictive monetary policy – a positive for the Peso. Technically, the USD/MXN is trading along the floor of a sideways range in the short-term.
A clear break above the zone of resistance around 17.15-17.18 might see further gains up towards the range highs again. A decisive breakout of the range – either below the floor at 16.86, or the ceiling at 17.40 – would change the directional bias of the pair. A break below the floor could see further downside to a target at 16.50, followed by the April 9 low at 16.26. On the other side, a break above the top would activate an upside target first at 17.