USD/MXN Price Analysis: Pair tests 20.20 as Mexican peso loses momentum
|- USD/MXN main trend is bearish, short-term supported at 19.90 and 19.70.
- US dollar set to strengthen if it holds above 20.20.
The USD/MXN pair is rising for the fourth consecutive day and is it is holding firm above the 20-day moving average. The US dollar gained momentum on Monday after holding above 20.00 and it is testing the 20.20/25 resistance.
The main trend in USD/MXN is bearish, although in the short-term technical indicators favor the upside. The next strong resistance is seen at 20.75, a horizontal level and the 55-day simple moving average. It if it breaks above, a test the eight-month downtrend line, today at 21.30, seems likely.
A slide back below 19.95 would weaken the US dollar. The next support is located at 19.90 and below the December low around 19.70. A consolidation under 19.70 would target 19.55/60.
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.