USD/MXN Price Analysis: Testing the 200-DMA as bears eye 20.1500
|- The Mexican peso posts its biggest weekly gain, 2.39%.
- Market sentiment is mixed; the greenback rallies but falls vs. risk-sensitive currencies.
- USD/MXN Price Forecast: Neutral, but a daily close under the 200-DMA would expose the pair under downward pressure.
The Mexican peso extends its weekly rally gains 2.39% vs. the US Dollar, despite a mixed market mood, on Friday’s New York session. At the time of writing, the USD/MXN is trading at 20.4218.
European and US equity markets fluctuate between gainers and losers. At the same time, the greenback remains bid, with the US Dollar Index, a gauge of the greenback’s value against a basket of peers, is up 0.34%, sitting at 98.31, faltering of weighing on the USD/MXN pair.
Overnight, the USD/MXN pair was subdued in the 20.50 area, without much movement, though as the North American session began, the pair drooped through European session lows around 20.4646, towards lows 20.40s area.
USD/MXN Price Forecast: Technical outlook
The USD/MXN is neutral biased and is probing the 200-day moving average (DMA), sitting at 20.4125. The Relative Strength Index (RSI) is at 41.50, beneath the 50-midline, aiming lower, suggesting the USD/MXN might be moving towards the February 23 YTD low at 20.1558, but it would find some hurdles on the way south.
If that scenario plays out, the USD/MXN’s first support would be the 200-DMA. Breach of the latter would expose 20.3117, which once cleared would pave the way towards February 23 daily low at 20.1558.
Upwards, the USD/MXX first resistance would be the 20.50 mark. A decisive break would expose the 50-DMA at 20.5667, followed by January 28 daily high at 20.9130 and then 21.00.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.