In the daily chart we detect a new downward trend in the USDMXN, tracing a Fibonacci retracement we can appreciate how the price has respected the 61.8% and 38.2% levels after reaching historical highs in March of this year. 

Macroeconomic data and local data have driven this correction that we have been seeing strongly since May. However, the outlook may change if the U.S. elections decide to put candidate Joe Biden in charge due to the clean energy issue, as the president of Mexico aims to strengthen PEMEX. 

On the other hand, the peso could be strengthened if Trump wins since during this year relations, although they have been somewhat rough, have also been smoothed over with the signing of trade agreements.

What to expect?

In the technical aspect the price could return to touch the zone of 20.50 and enter in range, although the vision is to be able to look for a new strengthening of the dollar from the testing of lower zones mainly because the tendency for years has been to rise and this puts us in the sight the zone of 22.80 to be surpassed after the elections.

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