USD/MXN Price Analysis: Dollar at three-month highs, testing 20.50

USD/MXN rises further to the 20.50 key area.
Greenback strengthens across the board on Wednesday.

Matías Salord FXStreet

The combination of a stronger US dollar across the board and a somewhat weaker Mexican peso boosted the USD/MXN further to the upside. It is rising for the fifth consecutive day, trading at the highest level since mid-June.

The pair is consolidating above 20.40, reinforcing the bullish outlook. The next resistance stands at the 20.50/55 barrier and above the target might be located at the June top at 20.75.

Despite the extreme overbought reading in the short-term, no signs of a reversal or consolidation are seen yet and the strength of the US dollar still appears to have legs.

A daily close below 20.40 could point to some difficulties extending the move higher, but only a decline back under 20.15 should alleviate the bullish tone. If a correction brings USD/MXN below 20.00, the short-term outlook would favor the Mexican peso.

USD/MXN daily chart

USD/MXN

Overview
Today last price	20.4568
Today Daily Change	0.1210
Today Daily Change %	0.60
Today daily open	20.3358

Trends
Daily SMA20	20.0003
Daily SMA50	20.0335
Daily SMA100	20.0047
Daily SMA200	20.1186

Levels
Previous Daily High	20.397
Previous Daily Low	20.0785
Previous Weekly High	20.2043
Previous Weekly Low	19.9365
Previous Monthly High	20.4572
Previous Monthly Low	19.8037
Daily Fibonacci 38.2%	20.2753
Daily Fibonacci 61.8%	20.2002
Daily Pivot Point S1	20.1439
Daily Pivot Point S2	19.9519
Daily Pivot Point S3	19.8253
Daily Pivot Point R1	20.4624
Daily Pivot Point R2	20.589
Daily Pivot Point R3	20.7809

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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