USD/MXN Price Analysis: Strong barrier around 20.45 intact

US dollar jumps and then makes a full pullback.
Mexican peso gains on risk appetite. Banxico's decision due on Thursday.
USD/MXN upside capped by 20.45, testing the 20-day SMA.

Matías Salord FXStreet

The USD/MXN made a run to 20.46 after the release of US inflation data, reaching the highest level in a week. Then, amid a general reversal of the US dollar, it pulled back all the way down back and printed a fresh daily low at 20.21, slightly above the 20-day Simple Moving Average (SMA).

The 20-SMA at 20.20 is the immediate support level and a break lower should clear the way for a test of an uptrend line at 20.08. Below the line, there is not much support until the May low at 19.99, also a critical horizontal level.

The daily RSI and the Momentum turned south, suggesting some strength ahead for the Mexican peso that would be confirmed with a daily close under 20.20.

If USD/MXN remains above 20.25, a new test of 20.45 would remain on the table. The area around 20.45 also contains the 200-day SMA. A consolidation above should clear the way for more gains above the 20.50 horizontal resistance. The next significant barrier is seen at 20.70.

USD/MXN daily chart

USD/MXN

Overview
Today last price	20.2561
Today Daily Change	-0.1361
Today Daily Change %	-0.67
Today daily open	20.3922

Trends
Daily SMA20	20.1908
Daily SMA50	20.3086
Daily SMA100	20.4073
Daily SMA200	20.4411

Levels
Previous Daily High	20.441
Previous Daily Low	20.2715
Previous Weekly High	20.5113
Previous Weekly Low	20.0005
Previous Monthly High	20.6382
Previous Monthly Low	19.7269
Daily Fibonacci 38.2%	20.3362
Daily Fibonacci 61.8%	20.3763
Daily Pivot Point S1	20.2955
Daily Pivot Point S2	20.1988
Daily Pivot Point S3	20.126
Daily Pivot Point R1	20.465
Daily Pivot Point R2	20.5378
Daily Pivot Point R3	20.6345

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.

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