USD/MXN Price Analysis: Breaking below 19.70, next target near 19.50
- Mexican peso outperforms on Wednesday after US election, benefit by risk appetite.
- USD/MXN attempts to break the 19.70 support area.
The USD/MXN is falling on Wednesday on the back of a weaker US dollar and as US stocks hit fresh record highs. The Mexican peso is outperforming among emerging market currencies pushing the pair further lower.
After testing for days the 19.70 support, USD/MXN dropped clearly below reaching, as of writing, at 19.65 the lowest since March. If it consolidates below 19.70, it would clear the way to more losses, targeting the next support are at 19.45/50. Below the next target is seen at 19.35.
If USD/MXN recovers and climbs back above 19.70, it would likely continue to trade in the 20.20/19.70 range. A daily close above 20.20 (50-day moving average) would likely point to a sharper recovery of the greenback.
Current bearish moves in the pair align with the main trend, so more losses seem likely over the medium term. A decline to levels near 19.00 in January should not be ruled out while it holds under the 50-SMA.
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.
