- The Mexican peso remains among the best performers of the week.
- USD / MXN testing the 19.95 zone, looking at the uptrend line.
The USD/MXN falls on Wednesday, ahead of the FOMC statement, for the sixth day in a row. It is below the 19.97 zone that contains the 20- and 55-day moving average. A daily close around the current level would open the doors for a test of an uptrend line from the June lows, currently at 19.88.
The price is near areas of strong support that could trigger a recovery in the dollar. However, a drop below 19.88 would expose the next support areas at 19.80 and 19.70. Technical indicators are pointing lower, especially if it remains below 19.95. The (daily) momentum is breaking below 100 and the RSI is flat around 50.
A recovery above 20.05 would ease the downward pressure, while a consolidation north of 20.10 should strengthen the dollar for a test of the 200-day moving average (20.19).
Daily USD / MXN chart
Technical levels
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