Forex

Testing critical support around 19.30


  • Mexican peso rises again versus US dollar.  
  • USD/MXN tests critical support around 19.25/30.
  • Upside remains limited while under 19.55/60.

The USD/MXN is falling on Wednesday for the second day in a row, amid a weaker US Dollar and ahead of the release of the FOMC minutes. The pair is pulling back after the upside was capped by the 19.60 horizontal resistance and the 20-day Simple Moving Average at 19.55.  

Recently USD/MXN bottomed at 19.32, the lowest level in six days. So far the pair has been able to remain above the critical support area around 19.25/30. Below that area, the next target is seen at 19.00/05, with an intermediate resistance at 19.15.

Technical indicators are turning south again. RSI is moving to the downside but far from the 30 level. Price holds below key moving averages.  A consolidation between 19.30 and 19.60 over the next sessions seems likely.

The Dollar needs to break and hold above 19.60 in order to improve the outlook. A daily close above would point to more gains, toward the next barrier at 19.80.

USDMXN daily chart

 



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