USD/MXN Price Analysis: Mexican peso hits weekly highs, tests 20.00 ahead of Banxico
|- Mexican central bank expected to keep rates unchanged, hawkish bias.
- USD/MXN with bearish momentum, unclear trend.
The USD/MXN bottomed on Thursday at 20.00, the lowest level in a week, and then rebounded modestly. The 20.00 area remains under pressure. It is a critical support and near the 20 and 55-day simple moving average. A consolidation under 19.95 would point to further strength for the Mexican peso.
The dollar is falling for the fourth consecutive day ahead of the decision of the Bank of Mexico. No change is expected but the statement could have an impact on the MXN.
Despite the ongoing decline, technical indicators in USD/MXN, like the daily RSI are not yet at extreme levels, suggesting it could drop further. The 20.00 zone is a barrier that could trigger a rebound. On the upside, the resistance is seen at 20.25, a horizontal level and also the 100-day moving average. Above the bearish pressure would alleviate.
USD/MXN daily chart
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