USD/MXN Technical Analysis: Bearish correction losses strength, back to the range

The USD/MXN bottomed yesterday at 19.98 and then pulled back. Today recovered further and reached 20.33. Near the end of the US session stands around 20.30, marginally below the 20-day moving average.
The intraday bullish tone eased after being unable to break above 20.35 and also after pulling back under the 20-day moving average. A confirmation significantly above 20.35 would signal that price could continue to move sideways, including a test of 20.50.
To the downside, a slide below 20.20 would increase the momentum of the Mexican peso, opening the doors for another test of 20.00. A firm break to 20.00 is needed to clear the way to more losses, with a potential target at 19.60/70.
The long-term trend is bullish, but short-term signal shows a lack of strength at the moment. A weekly close above 20.50 could point to more gain while below 20.00, further losses seem more likely.

Matías Salord FXStreet

USD/MXN Daily Chart

USD/MXN

Overview:
    Today Last Price: 20.3029
    Today Daily change %: 1.08%
    Today Daily Open: 20.085
Trends:
    Previous Daily SMA20: 20.3339
    Previous Daily SMA50: 19.8668
    Previous Daily SMA100: 19.3787
    Previous Daily SMA200: 19.2898
Levels:
    Previous Daily High: 20.235
    Previous Daily Low: 19.9874
    Previous Weekly High: 20.658
    Previous Weekly Low: 20.0079
    Previous Monthly High: 20.6355
    Previous Monthly Low: 19.576
    Previous Daily Fibonacci 38.2%: 20.082
    Previous Daily Fibonacci 61.8%: 20.1404
    Previous Daily Pivot Point S1: 19.9699
    Previous Daily Pivot Point S2: 19.8548
    Previous Daily Pivot Point S3: 19.7223
    Previous Daily Pivot Point R1: 20.2176
    Previous Daily Pivot Point R2: 20.3501
    Previous Daily Pivot Point R3: 20.4652

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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