USD/MXN Price Analysis: Mexican peso in a consolidation range, under 22.00
- Mexican peso fails at key support and loses strength.
- USD/MXN rebounds but still holds a bearish bias.
The USD/MXN pair printed a fresh two month lows on Tuesday at 21.45 and then rebounded. Again the area around 21.45/50 capped the downside and triggered a rebound toward 22.00. The greenback hit a daily high at 21.89 and then pulled back modestly.
In the very short-term the bias favors a further approximation to 22.00 (horizontal resistance, round number and the 100-EMA in four hours chart). A firm break higher would clear the way to more gains targeting 22.20 and also could signal a potential base.
If the consolidation range in USD/MXN prevails, approximation to 22.00 could be seen as an opportunity to sell with a first target slightly below 21.70 and the second at 21.50. Under 21.45, the next support area is seen at 21.30. The main trend remains bearish.
USD/MXN 4-hour 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.
