USD/MXN set to test the January low at 19.5488 – Commerzbank

USD/MXN has made a four-month low at 19.7542. The pair would eye the January low at 19.5488 on a slip through the aforementioned level, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.

Bearish while below the current May high at 20.3300

“USD/MXN’s recent drop has taken it to a four-month low at 19.7542 above which it may short-term stabilise this week. Once slipped through, however, the December-to-January lows at 19.7002/19.5488 will be targeted but may well hold once more. Below this area the 2017-2021 support line can be found at 19.0412.” 

“We will retain our bearish medium-term forecast while the currency pair remains below the current May high at 20.3300. Above it meanders the 200-day moving average at 20.6442. Much further up the February and late March highs can be spotted at 20.9730/21.0483.”