USD/MXN Technical Analysis: Remains in consolidation range with a bearish bias but...
- The Mexican peso rallied at the beginning of the week following the suspension of US tariffs on Mexican imports. The currency consolidated most of those gains.
- The USD/MXN bottomed at 19.08 and then build a support at 19.10.
- A weekly bearish gap between 19.32 and 19.62 remains open.
Price is holding above an uptrend line while at the same time below a key 20-day moving average. Short-term technical indicators favor the downside but with USD/MXN near the mentioned line and so far being unable to break under 19.10, the positive momentum for the peso is easing.
A close below 19.05 would point to further losses targeting the next support at 18.90.
On the upside, 19.25 (flat 20-day moving average) could be seen as the resistance area to break. A consolidation on top would lead to a test of the horizontal resistance at 19.30; if the USD/MXN keeps rising, there is not much resistance until 19.45.
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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.
