USD/MXN set to slide towards the 19.5980 June low – Commerzbank

USD/MXN has come off the June, October and current November highs at 20.7490/9794. In the view of Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, the pair is set to head back down towards the 19.5980 June low.

Key resistance at 20.7490/9794 provoked failure

“USD/MXN recent steep ascent only briefly overcame the June and October highs at 20.7490/9035 and made its current November peak at 20.9794 before giving back most of its recent gains.” 

“The October through at 20.1195 is back in focus, a drop below which would engage the 2020-2021 support line and September low at 19.9876/8476 and the April and May as well as the late June to mid-August lows at 19.8001/7061. Then there is the June low at 19.5980 which is also expected to eventually be reached provided that no rise and daily chart close above last week’s high at 20.9794 is made.” 

“If last week’s high at 20.9794 were to unexpectedly be exceeded on a daily chart closing basis, the February high at 21.0483 would be back on the plate. Further up lies the March high at 21.6380.”