USD/MXN is recovering from its current September low at 19.8476. The pair is set to target the August high at 20.4650, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, reports.
USD/MXN to hover above June low at 19.5980
“USD/MXN levelled out above the 2020-2021 support line at 19.8355 and so far reached the 200-day moving average at 20.1146. Above it beckons the seven-month resistance line at 20.2756, the March low at 20.2823, May high at 20.3300 and also the August peak at 20.4650.”
“Below the 2020-2021 support line at 19.8355 lies the 19.8001/19.7061 support area which consists of the April and May as well as the late June to mid-August lows.”
“Key support sits at 19.5980/19.5488, made up of the January and June lows, and this we expect to continue to hold.”
“Only an unexpected daily chart close below the 19.5488 January low would lead to the March 2019 low at 18.7482 being targeted. This is not our preferred scenario.”
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