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Test the 20.00 level after the reversal

  • The Mexican peso fails to break the 19.80 support again and loses momentum.
  • The USD / MXN that has the best day in weeks should stay above 20.00 to improve the bullish outlook.

The USD/MXN it’s going up on Wednesday, moderately, but that’s enough to be the best day in weeks. After many days of range consolidation, the cross is testing the 20.00 zone and levels above 19.95, which coincides with the 20 and 55 day simple moving averages.

A confirmed breakout with a close above 20.00 would ease the downward pressure, suggesting more gains in the future. The next relevant hurdle is around 20.25.

On the other hand, the key short-term support is 19.80; a daily close below would clear the way for further losses, with a target of 19.70. If the decline continues, attention would turn to the 19.50 area.

In the short term, technical indicators offer neutral to bullish signals. A failure to break 19.95 should favor a downward correction, back to the recent range between 19.80 and 19.95. A weekly close above 20.15 should warn of a possible rally to 20.50, while below 19.70, to 19.45.

Daily USD / MXN chart

Technical levels

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