USD/MXN Price Analysis: Mexican peso unable to break under 20.00

  • Bearish tone prevails in USD/MXN, downside limited by 19.95/20.00.
  • MXN not among the top performers on Wednesday ahead of Banxico.

The USD/MXN is trading modestly lower on Wednesday and continues to press toward the 19.95/20.00 critical short-term support. The 20 and 55-day moving averages are placed on that zone containing a horizontal support and considered a physiological level.

A break under 19.95 could trigger more losses in the very short-term and also volatility. A close below would target the next support at 19.75.  If USD/MXN manages to hold above 20.00, it could rebound. The immediate resistance is located at 20.15, followed by 20.30.

The Mexican peso is rising since last Friday versus the US dollar. It failed to strengthen further during the last session and now is lagging other emerging market currencies, probably because USD/MXN hit a strong support at 20.00.

On Thursday, the Bank of Mexico will announce its decision on monetary policy. The central bank could cut the key rate by 25bp to 4% or remain on hold. The outcome should not have a significant influence on MXN that is more correlated with global risk sentiment.

USD/MXN daily chart



Today last price 20.0559
Today Daily Change -0.0409
Today Daily Change % -0.20
Today daily open 20.0968
Daily SMA20 20.0245
Daily SMA50 19.9715
Daily SMA100 20.4916
Daily SMA200 21.4202
Previous Daily High 20.1485
Previous Daily Low 20.0136
Previous Weekly High 20.593
Previous Weekly Low 20.0739
Previous Monthly High 20.551
Previous Monthly Low 19.5491
Daily Fibonacci 38.2% 20.097
Daily Fibonacci 61.8% 20.0651
Daily Pivot Point S1 20.0241
Daily Pivot Point S2 19.9515
Daily Pivot Point S3 19.8893
Daily Pivot Point R1 20.159
Daily Pivot Point R2 20.2211
Daily Pivot Point R3 20.2938



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