USD/MXN to drop towards the January low at 19.5488 – Commerzbank

The USD/MXN pair has resumed its descent and targets the January low at 19.5488, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, informs.

Bearish while below the 20.33 mark

“USD/MXN’s recent bounce off its 19.7799 April low has been short-lived and petered out at its current May high at 20.3300 with the April low at 19.7799 about to be slipped through. In this case the December-to-January lows at 19.7002/19.5488 will be targeted and may well hold once more. Below this area the 2017-2021 support line can be found at 19.0412.” 

“We will retain our once again bearish medium-term forecast while the currency pair remains below the last reaction high at 20.3300. Above it meanders the 55-day moving average at 20.4000 and the 200-day moving average at 20.7072. Much further up the February and late March highs can be spotted at 20.9730/21.0483.”