USD/MXN Price Analysis: Bearish momentum intact after rejection from above 19.30
|- Broad based decline of the US Dollar triggers volatility across financial markets.
- USD/MXN gives up Wednesday’s rally showing Mexican Peso still in command.
- Another test of 19.00/05 should not be ruled out.
The USD/MXN is falling sharply on Thursday, after a wild Wednesday. Yesterday, the pair jumped, rising not only above 19.30 but also to 19.46. It respected a downtrend line and resume the downside, amid a broad slide of the US Dollar.
On Wednesday, USD/MXN peaked at 19.46, trading momentarily above the 20-day Simple Moving Average. The upside was capped by a downtrend line and closed the day below 19.30: a sign that the Greenback is not ready yet for a sustainable rebound.
All the positive developments for the Dollar, have been reversed during the last 24 hours. The bearish trend and momentum have been reaffirmed. While under 19.30, the Mexican Peso could likely test again the 19.00/05 psychological area. A break lower would target 18.85.
USDMXN daily chart
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