USD/MXN Price Analysis: Rally finds resistance at 20.20, Mexican peso at lowest in three weeks
|- USD/MXN break above 20.00 and soars to 20.20.
- Mexican peso remains under pressure in the short term.
- The technical outlook now favors the upside in USD/MXN.
Risk aversion and a rally of the US dollar ahead of the FOMC meeting on Wednesday boosted the USD/MXN. The breakout above 20.00 added more fuel to the rally. The Mexican peso is among the worst performers on Monday.
The cross reached at 20.20 the highest level since late August. The 20.20/25 band now is the key resistance and a break higher should clear the way to more gains, targeting the August top at 20.45. Price is back above the 20, 100 and 200-day simple moving average. The road north has many resistance levels unit 20.65.
Technical indicators now point to the upside in USD/MXN after the price broke a multi-day range. A slide back under 20.00 would negate the bullish short-term outlook. Below support levels might be seen at 19.97 and then the September low around 19.85.
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.