USD/MXN Price Analysis: Testing critical support around 19.30

Mexican peso rises again versus US dollar.
USD/MXN tests critical support around 19.25/30.
Upside remains limited while under 19.55/60.

Matías Salord FXStreet

The USD/MXN is falling on Wednesday for the second day in a row, amid a weaker US Dollar and ahead of the release of the FOMC minutes. The pair is pulling back after the upside was capped by the 19.60 horizontal resistance and the 20-day Simple Moving Average at 19.55.

Recently USD/MXN bottomed at 19.32, the lowest level in six days. So far the pair has been able to remain above the critical support area around 19.25/30. Below that area, the next target is seen at 19.00/05, with an intermediate resistance at 19.15.

Technical indicators are turning south again. RSI is moving to the downside but far from the 30 level. Price holds below key moving averages. A consolidation between 19.30 and 19.60 over the next sessions seems likely.

The Dollar needs to break and hold above 19.60 in order to improve the outlook. A daily close above would point to more gains, toward the next barrier at 19.80.

USDMXN daily chart

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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