USD/MXN Price Analysis: Bearish bias while under 20.20

USD/MXN remains above 19.90 but faces pressure.
More losses seem likely while under 20.20.

Matías Salord FXStreet

The USD/MXN is modestly higher on Friday, but it remains under 20.00. The pair found support above 19.80 and rebounded. The move higher so far shows the lack of strength, keeping the bias in favor of the Mexican peso.

A consolidation under 19.90 should clear the way for a test of the 19.80 area. A break lower would expose 19.70 an even stronger support area that protects 19.50.

A recovery above 20.00 could point to more gains and a test of 20.17, where the 20- and 100-day Simple Moving Averages converge. A daily close above 20.25 should trigger more gains, shifting the short-term outlook from bearish to neutral/bullish.

From a wider perspective, USD/MXN continues to trade in the 19.50/21.50 range as has been the case since November 2020. A weekly close above 21.00 could suggest a test of 21.50.

USD/MXN Daily chart

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.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD holds gains above 1.1400 on hawkish ECB expectations despite US-Iran tensions

The EUR/USD pair trades with mild gains around 1.1405 during the early Asian session on Wednesday. A hawkish tone from the European Central Bank provides some support to the Euro against the US Dollar. Traders await the upcoming ECB interest rate decision on Thursday.

Gold: Strong recovery might face roadblock as oil price extends gains

Gold price extends its winning streak for the third trading day on Wednesday, trading 1.5% higher to near $4,140 during the Asian session. The precious metal recovered strongly in the past few trading days from its three-week low of $3,959.80 as traders scaled back Federal Reserve’s interest rate hike expectations for the monetary policy meeting next week.

The market runs back into AI despite higher Oil and yields

World stocks surged as traders made a spirited return to the market’s commanding centre of gravity, piling back into semiconductors, AI leaders and momentum, with the enthusiasm of a crowd rushing through the one door it still trusts. The Nasdaq led Wall Street higher, semiconductor shares jumped more than 5%, and momentum staged its strongest rebound in years.

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.