USD/MXN Price Analysis: Firm above 22.00, testing 22.20 despite DXY’s slide
|- Short-term trend remains bearish in USD/MXN, but momentum fades.
- The US dollar is falling sharply versus majors but shows strength against emerging market currencies.
The USD/MXN pair rebounded at 22.00 and climbed to test the 22.20 area again despite the decline of the US dollar against majors. Emerging market currencies are posting mixed results reflecting some risk aversion.
The Mexican peso traded near the multi-month highs on Monday, but it reversed the trend. So far, the rebound in USD/MXN has been unable to negate the short-term bearish bias. The immediate resistance is seen at 22.25, and a break higher would alleviate the bearish tone. A daily close above 22.55 should lead to more gains.
On the flip side, now 22.00 is the immediate support of USD/MXN. Below comes the 21.85/90 area. A break lower would target the 21.45/50 support area, with intermediate support at 21.70.
USD/MXN 4-hour chart
USD/MXN technical levels
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.