USD/MXN Price Analysis: Correction underway, next target 18.85
- USD/MXN rebounds sharply from lowest level in almost three years.
- Strong support area above 18.50 and risk aversion triggers rebound.
The USD/MXN is rising on Wednesday after hitting at 18.55, the lowest level since February 2020. The rebound represents a correction after falling constantly since the beginning of the year.
The ongoing run is facing resistance at 18.75. A break higher would target 18.85. The next vital resistance stands at 19.00/05 that should limit the upside. Above then comes 19.20 that if broken should weaken the Mexican Peso.
A deterioration in market sentiment favored the correction in USD/MXN that would continue to receive support as stocks in Wall Street keep falling.
The Mexican peso needs to hold below 18.70 in order to keep the doors open to another test of the 18.55 area and the 2020 low at 18.50. A break lower would target 18.30
USD/MXN daily chart
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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.
