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.
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
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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.
