USD/MXN Price Analysis: A consolidation above 20.20 opens door to 20.45


  • USD/MXN turns negative, after hitting weekly highs near 20.30.
  • A recovery in market sentiment helped the Mexican peso during the American session.
  • A consolidation above 20.20 is likely to trigger more gains.

Emerging market currencies recovered ground during the American session from multi-day lows. They remain under pressure affected by the sharp decline in global stocks. The negative growth outlook and monetary tightening from the Fed weigh on currencies like the Mexican peso.

The USD/MXN peaked on Thursday at 20.26, the highest level in a week. Later as stocks recovered, pulled back erasing gains. Despite moving off highs, the outlook is biased to the upside. At the first attempt, the dollar was rejected from above 20.20. If it posts a daily close above it could rise further to the next resistance at 20.45. The 20.20 area is reinforced by the 100-day Simple Moving Average.

While under 20.20, some consolidation between 20.20 and 20.00 seems likely before the next directional move. A decline back to 20.00 should be seen as a normal correction after the rally from 19.80 to 20.20. 

A decline under 20.00 and below the 20-day SMA should strengthen the Mexican peso, favoring an extension toward the weekly low at 19.81. The key support below is the 19.70 area that if reached, could likely trigger a rebound.

USD/MXN daily chart

USD/MXN

USD/MXN

Overview
Today last price 20.1405
Today Daily Change 0.0111
Today Daily Change % 0.06
Today daily open 20.1294
 
Trends
Daily SMA20 20.0037
Daily SMA50 20.0527
Daily SMA100 20.1946
Daily SMA200 20.4261
 
Levels
Previous Daily High 20.2095
Previous Daily Low 20.0715
Previous Weekly High 20.3786
Previous Weekly Low 19.826
Previous Monthly High 20.5113
Previous Monthly Low 19.4131
Daily Fibonacci 38.2% 20.1242
Daily Fibonacci 61.8% 20.1568
Daily Pivot Point S1 20.0642
Daily Pivot Point S2 19.9989
Daily Pivot Point S3 19.9262
Daily Pivot Point R1 20.2021
Daily Pivot Point R2 20.2748
Daily Pivot Point R3 20.3401

 

 

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