• USD/MXN drops for the seventh day in a row, shows some exhaustion signs.
  • Technical indicators favor the Mexican peso, with strong support at 19.80.

Market optimism and a weaker US dollar continue to be the relevant drivers of the move lower in USD/MXN. It bottomed at 19.85, the lowest in three weeks, on Friday after the NFP. It then rebounded modestly, resuming the downside on Monday.

Despite the new decline, USD/MXN trades above the 19.80 support area. A break lower would clear the way to more losses, with the next support levels at 19.70 and 19.55.

After falling for many days, some exhaustion signs are emerging. Still the bias point to the downside. A bullish correction while under 20.10, would keep the downside bias intact.

A close above 20.10 should point to more gains ahead. The USD/MXN would have recovered key moving averages. The next resistance is seen at 20.20, with a daily close above favoring a test of the 20.40 area.

USD/MXN daily chart

usdmxn

USD/MXN

Overview
Today last price 19.8944
Today Daily Change -0.0306
Today Daily Change % -0.15
Today daily open 19.925
 
Trends
Daily SMA20 20.0908
Daily SMA50 20.0095
Daily SMA100 20.0046
Daily SMA200 20.1155
 
Levels
Previous Daily High 19.985
Previous Daily Low 19.8512
Previous Weekly High 20.2258
Previous Weekly Low 19.8512
Previous Monthly High 20.4572
Previous Monthly Low 19.8037
Daily Fibonacci 38.2% 19.9023
Daily Fibonacci 61.8% 19.9339
Daily Pivot Point S1 19.8558
Daily Pivot Point S2 19.7867
Daily Pivot Point S3 19.7221
Daily Pivot Point R1 19.9896
Daily Pivot Point R2 20.0541
Daily Pivot Point R3 20.1233

 

 

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