USD/MXN Price Analysis: Resistance at 19.60 limits the upside
- Mexican peso gains versus US dollar after three days.
- USD/MXN finds resistance at the 20-day SMA before 19.60.
- Interim support at 19.40, key level at 19.30.
The USD/MXN is falling on Tuesday after rising during three consecutive days, on a quiet session for financial markets. The rebound from monthly lows found resistance near the 19.60 barrier. The pair reversed its course after reaching the 20-day Simple Moving Average.
The ongoing retreat could extend toward the interim support area of 19.40. A break lower would expose the critical 19.25/30 zone that capped the downside last week. Below that area, the next target is seen at 19.00/05 (intermediate resistance at 19.15).
Technical indicators area mixed. Momentum is still moving to the upside but the RISE is starting to turn south. Price holds below key moving averages. A consolidation between 19.30 and 19.60 over the next sessions seems likely.
If the Dollar breaks and holds above 19.60 it would gain strength and could rise to the next barrier at 19.80.
USDMXN 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.
