USD/MXN Price Analysis: Under 20.20, could test the critical 20.00 zone

Mexican peso gains momentum during US session, heads for the highest close since March.
USD/MXN about to challenge the 20.00 strong barrier again.

Matías Salord FXStreet

The USD/MXN is falling on Thursday and recently dropped back under 20.20. If it remains at current levels, it will post the lowest daily close since March and should point to another test the 20.00 area.

The barrier around 20.00 is a strong support and also a psychological area. Volatility could rise if the price breaks below or even if there is a considerable rebound. Two weeks ago, USD/MXN jumped to 20.65 after reaching 20.00.

The main trend in the pair is bearish. A break under 20.00 is needed to clear the way to more losses with an immediate target at 19.75/80. The perspective will remain intact as long as it trades under 21.70.

A recovery above 20.50 in USD/MXN could lead to a test of the 20.70/80 resistance band (horizontal and convergence of the 20 and 55-day moving averages). A consolidation above 20.80 would alleviate the bearish pressure.

USD/MXN daily chart

USD/MXN

Overview
Today last price	20.2415
Today Daily Change	-0.0885
Today Daily Change %	-0.44
Today daily open	20.33

Trends
Daily SMA20	20.7854
Daily SMA50	21.2164
Daily SMA100	21.7083
Daily SMA200	22.1377

Levels
Previous Daily High	20.3436
Previous Daily Low	20.1718
Previous Weekly High	20.6927
Previous Weekly Low	20.0336
Previous Monthly High	22.1344
Previous Monthly Low	20.831
Daily Fibonacci 38.2%	20.278
Daily Fibonacci 61.8%	20.2374
Daily Pivot Point S1	20.22
Daily Pivot Point S2	20.11
Daily Pivot Point S3	20.0482
Daily Pivot Point R1	20.3918
Daily Pivot Point R2	20.4536
Daily Pivot Point R3	20.5636

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.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold holds above $5,000 as bears seem hesitant amid Fed rate cut bets

Gold edges lower at the start of a new week, though it defends the $5,000 psychological mark through the Asian session. The underlying bullish sentiment is seen acting as a headwind for the bullion. However, bets for more rate cuts by the Fed, bolstered by Friday's softer US CPI, keep the US Dollar bulls on the defensive and continue to support the non-yielding yellow metal as the focus now shifts to FOMC Minutes on Wednesday.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.