USD/MXN Price Analysis: Rally finds resistance at 20.20, Mexican peso at lowest in three weeks

USD/MXN break above 20.00 and soars to 20.20.
Mexican peso remains under pressure in the short term.
The technical outlook now favors the upside in USD/MXN.

Matías Salord FXStreet

Risk aversion and a rally of the US dollar ahead of the FOMC meeting on Wednesday boosted the USD/MXN. The breakout above 20.00 added more fuel to the rally. The Mexican peso is among the worst performers on Monday.

The cross reached at 20.20 the highest level since late August. The 20.20/25 band now is the key resistance and a break higher should clear the way to more gains, targeting the August top at 20.45. Price is back above the 20, 100 and 200-day simple moving average. The road north has many resistance levels unit 20.65.

Technical indicators now point to the upside in USD/MXN after the price broke a multi-day range. A slide back under 20.00 would negate the bullish short-term outlook. Below support levels might be seen at 19.97 and then the September low around 19.85.

USD/MXN daily chart

USD/MXN

Overview
Today last price	20.1643
Today Daily Change	0.1421
Today Daily Change %	0.71
Today daily open	20.0222

Trends
Daily SMA20	20.0319
Daily SMA50	20.0131
Daily SMA100	20.0013
Daily SMA200	20.1138

Levels
Previous Daily High	20.0327
Previous Daily Low	19.9061
Previous Weekly High	20.0327
Previous Weekly Low	19.8429
Previous Monthly High	20.4572
Previous Monthly Low	19.8037
Daily Fibonacci 38.2%	19.9844
Daily Fibonacci 61.8%	19.9545
Daily Pivot Point S1	19.9413
Daily Pivot Point S2	19.8604
Daily Pivot Point S3	19.8148
Daily Pivot Point R1	20.0679
Daily Pivot Point R2	20.1136
Daily Pivot Point R3	20.1945

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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