USD/MXN Price Analysis: Bullish while above 20.25, jumps to test 20.80
|- Mexican peso trims losses versus US dollar, still down affected by the depreciation of the Turkish lira.
- USD/MXN extends rebound to the 20.80/85 resistance area.
The USD/MXN is rising 0.35% on Monday after trimming gains over the last hours. The pair opened the week sharply higher on jitters created by the depreciation of the Turkish lira. Both currencies moved off lows.
Last week, the USD/MXN found support at the critical area of 20.25, a horizontal level and also an uptrend. That area supports the bullish short-term outlook. A break lower would negate the perspective, pointing to a consolidation phase.
While above 20.50, the USD/MXN will likely rise back to test the 20.80/85 resistance area that protects the next critical level seen at 21.00. More gains above 21.00 would see resistance at 21.10 and 21.30 before the strong barrier of 21.50.
A decline over the next session under 20.50 would alleviate the dollar’s momentum. More declines in USD/MXN would need a positive tone in Wall Street.
USD/MXN daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.