USD/MXN Price Analysis: A correction to 19.00 is on the cards
- Mexican Peso holds bullish tone against the US Dollar.
- USD/MXN’s technical indicators point to a correction or a consolidation.
- Consolidation below 18.70 would open the doors to 18.50.
The USD/MXN is rising on Monday after hitting the lowest intraday level in almost three years at 18.73. A weaker US Dollar and a positive tone across financial markets are offering support the Mexican Peso and emerging market currencies.
The rebound on Monday was capped by the 18.85 zone, the confluence of a horizontal level, the 20-Simple Moving Average in four hours chart and a downtrend line. A break above would open the doors to a deeper bullish correction in line with some technical indicators. The next resistance is seen at 18.90 before the more important zone of 19.00/05 which should limit the upside.
In the short-term, technical indicators favor a stabilization. Momentum is well below midlines but pointing to the upside. RSI is at or near oversold levels and MACD shows some potential for a deeper correction.
The main trend for USD/MXN is bearish. The downside so far has found support at the 18.70/75 zone. A break lower would clear the way to more losses, targeting the 18.50 zone.
USD/MXN 4-hour chart
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Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
