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.

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