USD/MXN Price Analysis: Sharp decline after being unable to break 20.25

USD/MXN fails to break critical resistance at 20.25.
Below 20.00, next strong support stands at 19.80.

Matías Salord FXStreet

The USD/MXN is falling sharply on Friday, amid a broad-based decline of the US Dollar. The decline of the pair takes place after being unable to break a key resistance area around 20.25.

So far, USD/MXN bottomed at 19.92 and is it about to test the 19.90 short-term support. Technical indicators favor the downside, with RSI turning shout, like Momentum which still remains above 100. Price is back under the 20-day Simple Moving Average.

Since mid-August, the pair is moving sideways in a range between 19.80 and 20.25. If reached, the 19.80 zone is likely to offer a rebound. A break lower, would point to the next support around 19.65.

The 20.25 has become critical to the upside. A break above should clear the way to more gains, targeting initially the 20.45 zone.

USD/MXN daily chart

USD/MXN

Overview
Today last price	19.9474
Today Daily Change	-0.2335
Today Daily Change %	-1.16
Today daily open	20.1809

Trends
Daily SMA20	20.0589
Daily SMA50	20.2878
Daily SMA100	20.1676
Daily SMA200	20.37

Levels
Previous Daily High	20.2946
Previous Daily Low	20.128
Previous Weekly High	20.2483
Previous Weekly Low	19.8495
Previous Monthly High	20.8261
Previous Monthly Low	19.8019
Daily Fibonacci 38.2%	20.2309
Daily Fibonacci 61.8%	20.1916
Daily Pivot Point S1	20.1077
Daily Pivot Point S2	20.0346
Daily Pivot Point S3	19.9412
Daily Pivot Point R1	20.2743
Daily Pivot Point R2	20.3677
Daily Pivot Point R3	20.4409

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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