USD/MXN Price Analysis: Mexican peso hits weekly highs, tests 20.00 ahead of Banxico

Mexican central bank expected to keep rates unchanged, hawkish bias.
USD/MXN with bearish momentum, unclear trend.

Matías Salord FXStreet

The USD/MXN bottomed on Thursday at 20.00, the lowest level in a week, and then rebounded modestly. The 20.00 area remains under pressure. It is a critical support and near the 20 and 55-day simple moving average. A consolidation under 19.95 would point to further strength for the Mexican peso.

The dollar is falling for the fourth consecutive day ahead of the decision of the Bank of Mexico. No change is expected but the statement could have an impact on the MXN.

Despite the ongoing decline, technical indicators in USD/MXN, like the daily RSI are not yet at extreme levels, suggesting it could drop further. The 20.00 zone is a barrier that could trigger a rebound. On the upside, the resistance is seen at 20.25, a horizontal level and also the 100-day moving average. Above the bearish pressure would alleviate.

USD/MXN daily chart

USD/MXN

Overview
Today last price	20.0312
Today Daily Change	-0.1612
Today Daily Change %	-0.80
Today daily open	20.1924

Trends
Daily SMA20	20.059
Daily SMA50	20.0036
Daily SMA100	20.2482
Daily SMA200	20.3916

Levels
Previous Daily High	20.4096
Previous Daily Low	20.1713
Previous Weekly High	20.7488
Previous Weekly Low	19.8385
Previous Monthly High	20.3286
Previous Monthly Low	19.7191
Daily Fibonacci 38.2%	20.2623
Daily Fibonacci 61.8%	20.3186
Daily Pivot Point S1	20.1059
Daily Pivot Point S2	20.0195
Daily Pivot Point S3	19.8676
Daily Pivot Point R1	20.3442
Daily Pivot Point R2	20.4961
Daily Pivot Point R3	20.5825

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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