USD/MXN Price Analysis: How far can it go?


  • Mexican peso tumbles on Banxico’s headlines.
  • USD/MXN overbought, but still no signs of correction.
  • The 21.50 area is the key zone to watch.

Mexican President Andres Manuel Lopez Obrador added more fuel to the USD/MXN rally on Wednesday by changing his nominee for the next head of the central bank. It triggered a new leg higher that peaked at 21.62, the new high since March.

From the new top, USD/MXN pulled back, finding support above 21.35. Currently, the pair is hovering around 21.50, a key area. A consolidation above should lead the road open to more gains. The next strong resistance is located at 21.90 that should hold.

Technical indicators are at extreme readings but no signs of correction are seen. The RSI is above 70 but still looking north; a similar situation occurs with Momentum. Despite showing no signs, the 21.50 zone should limit the upside for the time being, particularly if overall market conditions help.

If USD/MXN fails to hold above 21.50, it could pullback initially to 21.20 and then to the more relevant and strong support seen at 20.90. A slide below would alleviate the bullish pressure.

The constructive outlook for USD/MXN will remain intact while price stays above the uptrend line, today at 20.35.

usdmxn

USD/MXN

Overview
Today last price 21.5275
Today Daily Change 0.0994
Today Daily Change % 0.46
Today daily open 21.4281
 
Trends
Daily SMA20 20.6873
Daily SMA50 20.4862
Daily SMA100 20.2488
Daily SMA200 20.2379
 
Levels
Previous Daily High 21.6162
Previous Daily Low 21.1702
Previous Weekly High 20.89
Previous Weekly Low 20.4702
Previous Monthly High 20.9034
Previous Monthly Low 20.1193
Daily Fibonacci 38.2% 21.4458
Daily Fibonacci 61.8% 21.3406
Daily Pivot Point S1 21.1935
Daily Pivot Point S2 20.9588
Daily Pivot Point S3 20.7475
Daily Pivot Point R1 21.6395
Daily Pivot Point R2 21.8508
Daily Pivot Point R3 22.0855

 

 

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