USD/MXN Price Analysis: Bullish while above 20.25, looking at 20.50

Mexican peso turns negative amid risk aversion.
USD/MXN rebound and looks for a test of 20.45 and then 20.50.
Key events ahead: US inflation on Wednesday and Banxico on Thursday.

Matías Salord FXStreet

The USD/MXN turned positive on Tuesday during the last hours as US stocks failed to hold into positive ground. The risk aversion environment weighs on Emerging market currencies, including the Mexican peso. Banxico will likely announce a 50bps rate hike on Thursday.

From a technical perspective, short-term bias points to the upside, particularly while above 20.25. The next resistance stands at 20.45. A daily close above 20.50 should clear the day to more gains in the short-term. The next strong barrier is seen at 20.70.

A slide under 20.25 would alleviate the bullish momentum. Then emerges the 20-day moving average at 20.17, and a close below should expose the May low at 19.99.

Risks still appear to be tilted to the upside in the short-term but USD/MXN needs to break above 20.50 to open the doors to more strength, while below gains seem limited.

USD/MXN daily chart

USD/MXN

Overview
Today last price	20.4167
Today Daily Change	0.0176
Today Daily Change %	0.09
Today daily open	20.3991

Trends
Daily SMA20	20.1615
Daily SMA50	20.3136
Daily SMA100	20.4113
Daily SMA200	20.4386

Levels
Previous Daily High	20.4085
Previous Daily Low	20.1439
Previous Weekly High	20.5113
Previous Weekly Low	20.0005
Previous Monthly High	20.6382
Previous Monthly Low	19.7269
Daily Fibonacci 38.2%	20.3074
Daily Fibonacci 61.8%	20.245
Daily Pivot Point S1	20.2258
Daily Pivot Point S2	20.0526
Daily Pivot Point S3	19.9612
Daily Pivot Point R1	20.4904
Daily Pivot Point R2	20.5818
Daily Pivot Point R3	20.755

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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