USD/MXN Price Analysis: Mexican peso recovers, still looks bearish

USD/MXN drops for the second day in a row, approaches short-term support.
Technical indicators favor the Mexican peso, but cross remains above key level.

Matías Salord FXStreet

Market optimism continues to keep the upside limited in USD/MXN. The pair peaked at 20.45 two weeks ago and then it moved in a range between 20.17 and 20.42. On Monday it is testing level under 20.17 and holding above the 200-day simple moving average.

A slide below 20.15 would likely lead to a test of 20.05, the convergence of the 20-day and 55-day SMAs. A daily close below should strengthen the Mexican peso. The next support is an uptrend line at 19.87.

If USD/MXN rebounds back above 20.20 it would likely continue to trade sideways in the range 20.17/20.42. A daily close clearly above 20.40 should expose the next resistance at 20.55.

Technical indicators show momentum and RSI favoring the Mexican peso in the short-term. Still the trends point to the upside. Signs indicate that for the time being, USD/MXN remains unable to move significantly away from 20.00.

USD/MXN daily chart

USD/MXN

Overview
Today last price	20.1363
Today Daily Change	-0.0619
Today Daily Change %	-0.31
Today daily open	20.1982

Trends
Daily SMA20	20.0735
Daily SMA50	20.0218
Daily SMA100	20.0054
Daily SMA200	20.1163

Levels
Previous Daily High	20.4288
Previous Daily Low	20.1697
Previous Weekly High	20.4455
Previous Weekly Low	20.1697
Previous Monthly High	20.2515
Previous Monthly Low	19.7458
Daily Fibonacci 38.2%	20.2687
Daily Fibonacci 61.8%	20.3298
Daily Pivot Point S1	20.1023
Daily Pivot Point S2	20.0065
Daily Pivot Point S3	19.8432
Daily Pivot Point R1	20.3614
Daily Pivot Point R2	20.5247
Daily Pivot Point R3	20.6206

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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