USD/MXN Price Analysis: Mexican peso outlook remains bullish, trapped around 20.00
- Mexican peso moves sideways versus the US dollar in the short-term.
- The downside is limited by 19.70, while the key resistance stands at 21.10.
The USD/MXN is trading on a consolidation range, hovering around 20.00. It remains in a descendant channel with a bearish bias on a wider perspective. The rebounds of the US dollar have been unsustainable above 20.25, while on the flip side, the Mexican peso was not strong enough to break 19.70.
A daily close above 20.25 would suggest more strength for the dollar. A critical resistance is seen at the 20.75 area, and then comes the key 21.10 zone that contains an eight-month downtrend line, and the 100-day moving average. A break higher would change the bias to neutral/bullish.
A consolidation below 19.70 would open the doors to more losses, with a target at 19.45/50 that should limit the decline, at least momentarily. Below the next support could be seen at 19.20, the lower limit of the descendant channel.
USD/MXN daily high
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.
