USD/MXN Price Analysis: A test of 20.55 seems likely

Technical indicators are modestly biased to the upside in the short-term in USD/MXN.
Pair needs to break and hold above 20.55 to clear the way to more gains.

Matías Salord FXStreet

The USD/MXN is falling on Thursday after hitting on Wednesday a two week high at 20.52. The bullish bias in the near term is still intact, while at the same time the dominant trend still points south.

The pair is correcting to the upside from the main bearish trend, after finding support at 20.25/30. A decline below 20.35 should point to a new test of the critical area of 20.25/20.30 that includes the flat 200-day simple moving average.

On the upside, daily close above 20.55 (100-day SMA) should strengthen the US dollar. The next resistance stands at 20.70 and then at 20.90.

The weekly chart showed the 20-week SMA at 20.53; a close above would be a negative development for the Mexican peso, suggesting a potential bottom has been established.

USD/MXN daily chart

USD/MXN

Overview
Today last price	20.4403
Today Daily Change	-0.0431
Today Daily Change %	-0.21
Today daily open	20.4834

Trends
Daily SMA20	20.4823
Daily SMA50	20.8195
Daily SMA100	20.5596
Daily SMA200	20.2821

Levels
Previous Daily High	20.4955
Previous Daily Low	20.3252
Previous Weekly High	20.524
Previous Weekly Low	20.2809
Previous Monthly High	21.5164
Previous Monthly Low	20.3261
Daily Fibonacci 38.2%	20.4304
Daily Fibonacci 61.8%	20.3902
Daily Pivot Point S1	20.3739
Daily Pivot Point S2	20.2644
Daily Pivot Point S3	20.2036
Daily Pivot Point R1	20.5442
Daily Pivot Point R2	20.605
Daily Pivot Point R3	20.7146

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.

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