- The Mexican peso gains momentum during the US session and is heading towards the highest close since March.
- USD / MXN about to challenge the strong 20.00 barrier again.
The USD/MXN it is falling on Thursday and recently fell back below 20.20. If it remains at current levels, it will post the lowest daily close since March and should point to another test of the 20.00 zone.
The barrier around 20.00 is a strong support and also a psychological area. Volatility could increase if the price falls below or even if there is a considerable rally. Two weeks ago, the USD / MXN jumped to 20.65 after hitting 20.00.
The main trend of the pair is bearish. A break below 20.00 is needed to clear the way for further losses with an immediate target at 19.75 / 80. The outlook will remain intact as long as it trades below 21.70.
A recovery above 20.50 in USD / MXN could lead to a test of the 20.70 / 80 resistance band (horizontal and convergence of the 20 and 55 day moving averages). A consolidation above 20.80 would ease the downward pressure.
Daily chart
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