- The bias in the USD / MXN still favors the upside, despite the recent correction.
- The dollar remains above key moving averages, looking for another run to 20.45.
The USD/MXN it is trading modestly higher on Wednesday, after falling back for two days. The price remained above the 20.00 zone, maintaining a bullish bias in the short term. Another test of the 20.45 / 50 area (downtrend line / 100-day simple moving average) seems likely.
The positive bias has critical support at 19.95 / 20.00, the convergence of the 20 and 55 day moving averages. A decline below would indicate the resumption of the long-term downtrend, which is now being challenged.
The RSI continues to retreat from 70, starting to make room for another run higher. Above 20.30, the dollar should gain momentum to extend the upside. Resistance levels above 20.45 emerge at 20.60 and 20.80.
Daily chart
Technical levels
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