USD/MXN Price Analysis: Bearish outlook, testing 2022 lows

Mexican peso rises versus the US dollar for the third day in a row.
USD/MXN stays bearish, looking at 2022 lows near 19.70.
The 19.90 area is not the immediate resistance.

Matías Salord FXStreet

The USD/MXN keeps a bearish tone and continues to move lower at a slow pace, as equity markets recover. A few minutes ago, the Bank of Mexico released the minutes of its latest board meeting. The central bank could act more forcefully to curb inflation according to the document. Members noted inflation expectations have increased significantly.

The move lower in USD/MXN faces a strong barrier around 19.70/75 that contains many horizontal support levels and the 2022 low. A consolidation below should open the doors to a slide to the next critical support at 19.50/55.

If the pair remains above 19.75, the odds of a rebound will increase. A recovery to 19.90 should be seen as a modest correction, keeping the bearish tone intact. Above, at 20.10 awaits the 20-day Simple Moving Average. A daily close above should negate the bearish short-term outlook.

Technical indicators continue to favor the downside in USD/MXN. The RSI is still above 30, but it is flattening; Momentum remains below 100, now again pointing south.

USD/MXN daily chart

USD/MXN

Overview
Today last price	19.7682
Today Daily Change	-0.0665
Today Daily Change %	-0.34
Today daily open	19.8347

Trends
Daily SMA20	20.1427
Daily SMA50	20.1066
Daily SMA100	20.3421
Daily SMA200	20.442

Levels
Previous Daily High	19.9288
Previous Daily Low	19.789
Previous Weekly High	20.1838
Previous Weekly Low	19.8281
Previous Monthly High	20.6382
Previous Monthly Low	19.7269
Daily Fibonacci 38.2%	19.8425
Daily Fibonacci 61.8%	19.8754
Daily Pivot Point S1	19.7729
Daily Pivot Point S2	19.7111
Daily Pivot Point S3	19.6331
Daily Pivot Point R1	19.9127
Daily Pivot Point R2	19.9907
Daily Pivot Point R3	20.0525

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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