Bearish, below the 200-day SMA and testing levels below 20.30

  • USD/MXN falls below the 200-day SMA.
  • The outlook favors the downside, price will face strong support at 20.30 and 20.05.
  • Any dollar recovery below 20.70 is likely to be unstable.

The USD/MXN recorded the first daily close in months below the 200-day moving average and slightly below the 20.30 level on Wednesday. The 20.35/30 zone was a strong barrier and as long as the cross remains below, more losses are on the table.

The next support is at 20.15 and a more relevant one emerges below it at 20.00/05. A USD/MXN recovery could take the price quickly to 20.45 but should be seen as a correction. Critical resistance at the moment is seen around 20.70, the confluence of horizontal support, key MA and a downtrend line. A breakout to the upside would change the short-term bias from bearish to neutral/bullish.

Technical indicators look bearish. The RSI is approaching 70 and flattening out, a potential sign of exhaustion, not necessarily followed by a sharp correction. A consolidation is also possible, particularly if USD/MXN rises back above 20.30.

daily chart

Additional technical levels

EUR/USD

Panorama
Last Price Today 1.1363
Today’s Daily Change -0.0019
Today’s Daily Change % -0.17
Today’s Daily Opening 1.1382
Trends
20 Daily SMA 1.1329
50 Daily SMA 1.1329
100 Daily SMA 1.1404
200 Daily SMA 1,165
levels
Previous Daily High 1.1396
Previous Daily Minimum 1.1345
Previous Maximum Weekly 1.1495
Previous Weekly Minimum 1,133
Monthly Prior Maximum 1.1483
Previous Monthly Minimum 1.1121
Daily Fibonacci 38.2% 1.1376
Daily Fibonacci 61.8% 1.1365
Daily Pivot Point S1 1.1353
Daily Pivot Point S2 1.1323
Daily Pivot Point S3 1.1302
Daily Pivot Point R1 1.1404
Daily Pivot Point R2 1.1425
Daily Pivot Point R3 1.1454

Source: Fx Street

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