USD/MXN Price Analysis: Bearish, under the 200-day SMA and testing levels below 20.30

USD/MXN drops below the 200-day SMA.
Outlook favor the downside, price to face strong support at 20.30 and 20.05.
Any recovery of the dollar under 20.70, likely to be unstable.

Matías Salord FXStreet

The USD/MXN posted on Wednesday the first daily close in months below the 200-day moving average and slightly under the 20.30 level. The 20.35/30 area was a strong barrier and while the cross remains below, more losses are on the table.

The next support stands at 20.15 and below a more relevant emerges at 20.00/05. A recovery of USD/MXN could take the price quickly to 20.45 but it should be seen as a correction. The critical resistance at the moment is seen around 20.70, the confluence of horizontal support, key MA and a downtrend line. A break higher would change the short-term bias from bearish to neutral/bullish.

Technical indicators look bearish. The RSI is approaching 70 and flattening, a potential sign of exhaustion, not necessarily followed by a sharp correction. A consolidation is also possible particularly if USD/MXN rises back above 20.30.

USD/MXN daily chart

USD/MXN

Overview
Today last price	20.2971
Today Daily Change	0.0075
Today Daily Change %	0.04
Today daily open	20.2896

Trends
Daily SMA20	20.5747
Daily SMA50	20.6033
Daily SMA100	20.6693
Daily SMA200	20.3387

Levels
Previous Daily High	20.4128
Previous Daily Low	20.2516
Previous Weekly High	20.7031
Previous Weekly Low	20.3512
Previous Monthly High	20.9144
Previous Monthly Low	20.2712
Daily Fibonacci 38.2%	20.3132
Daily Fibonacci 61.8%	20.3512
Daily Pivot Point S1	20.2232
Daily Pivot Point S2	20.1568
Daily Pivot Point S3	20.0621
Daily Pivot Point R1	20.3844
Daily Pivot Point R2	20.4791
Daily Pivot Point R3	20.5455

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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