USD/MXN Price Analysis: Decline gains momentum below 21.50
- Mexican peso continues to outperform, heads for the highest close since September 21.
- USD/MXN drops for the fourth consecutive day falls under 21.50.
The USD/MXN is again falling almost 1%, accumulating a decline of 4.5% from the level it had a week ago as the Mexican peso continues to outperform. On Monday the slide is also being driven by a weaker US Dollar and high equity prices.
Price is now below a downtrend line that was broken weeks ago that stands at 21.48. If USD/MXN holds below, more losses seem likely. The next target might be seen at 21.15/20 and below at 21.00. The next strong barrier could be seen around September lows near 20.85.
On the upside, a recovery in USD/MXN above 21.50 would alleviate the bearish pressure, and above 21.65 (20-day moving average) the greenback could strengthen for a test of 21.95/22.00.
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.
