USD/MXN Price Analysis: Mexican peso recovers after another failure at 23.20
- USD/MXN trend still points to the upside, but it is losing momentum
- Correction limited by 23.00, a slide below would clear the way to more losses.
The USD/MXN reached a fresh monthly high on Tuesday at 23.22 and then pulled back to 22.95. The short-term bias point to the upside, but the momentum is fading, favoring a correction.
The pair again failed at the 23.20 area and also the 55-days simple moving average. A firm break above would target 23.50/55; the next resistance stands at 23.70.
A consolidation of USD/MXN below 23.00 would sign more losses ahead for a potential test the uptrend line, currently at 22.70 that should initially cap the downside. A break lower would negate the bullish outlook. As long as the pair remains above 23.00, another test of 23.20 seems likely.
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.
