USD/MXN Price Analysis: Resistance at 20.65/70 holds the upside
- Mexican peso recovers on Friday, still among worst weekly performers.
- USD/MXN moving in the new range, upside bias.
The USD/MXN is retreating on Friday, pulling back after reaching earlier at 20.72 the highest level in a week. It is trading under 20.50, with a strong bearish intraday momentum. The daily chart nevertheless stills shows a bullish bias.
If the slide continues, USD/MXN will likely face some support around 20.45. A break lower would set the attention to the 20.30 area that should limit the decline and favor a rebound. The next critical support stands around 20.13/18 that contains the 100 and 200 moving average.
On the upside, the 20.65/70 zone capped the rally so far. A daily close above 20.65 should expose the next key area of 20.85/90, the last defense to an attack of 21.00.
The daily chart shows a modest bullish bias that will likely remain in place while above 20.20. A weekly close below 20.10 (20-WMA) should strengthen the Mexican peso.
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.
