USD/MXN Price Analysis: Bullish while above 20.25, jumps to test 20.80
- Mexican peso trims losses versus US dollar, still down affected by the depreciation of the Turkish lira.
- USD/MXN extends rebound to the 20.80/85 resistance area.
The USD/MXN is rising 0.35% on Monday after trimming gains over the last hours. The pair opened the week sharply higher on jitters created by the depreciation of the Turkish lira. Both currencies moved off lows.
Last week, the USD/MXN found support at the critical area of 20.25, a horizontal level and also an uptrend. That area supports the bullish short-term outlook. A break lower would negate the perspective, pointing to a consolidation phase.
While above 20.50, the USD/MXN will likely rise back to test the 20.80/85 resistance area that protects the next critical level seen at 21.00. More gains above 21.00 would see resistance at 21.10 and 21.30 before the strong barrier of 21.50.
A decline over the next session under 20.50 would alleviate the dollar’s momentum. More declines in USD/MXN would need a positive tone in Wall Street.
USD/MXN daily chart
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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.
