USD/MXN Price Analysis: A consolidation above 20.20 would open the door to the 20.45 level

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  • l USD/MXN turns negative, after reaching weekly highs near 20.30.
  • A recovery in market sentiment helped the Mexican peso during the American session.
  • A consolidation above 20.20 is likely to trigger further gains.

Emerging market currencies recovered ground during the American session from multi-day lows. They remain under pressure, affected by the sharp decline in global stocks. The negative outlook for growth and the Fed’s monetary tightening weigh on currencies such as the MXN.

The USD/MXN reached a high of 20.26 on Thursday, the highest level in a week. Later, as the stock rallied, he backtracked, erasing the gains. Despite moving away from the highs, the outlook is tilted to the upside. On the first try, the dollar was rejected above 20.20. If it gets a daily close above, it could continue to go higher until the next resistance at 20.45. The 20.20 zone is reinforced by the 100-day simple moving average.

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A decline to 20.00 should be seen as a normal correction after the rally from 19.80 to 20.20.

A decline below 20.00 and below the 20-day SMA should strengthen the Mexican peso, favoring an extension towards the weekly low at 19.81. The key support below is the 19.70 area which, if reached, could trigger a bounce.

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USD/MXN daily chart

Technical levels

USD/MXN

Panorama
Last Price Today 20.1278
Today’s Daily Change -0.0016
Today’s Daily Change % -0.01
Today’s Daily Opening 20.1294
Trends
20 Daily SMA 20.0037
50 Daily SMA 20.0527
100 Daily SMA 20.1946
200 Daily SMA 20.4261
levels
Previous Daily High 20.2095
Previous Daily Minimum 20.0715
Previous Maximum Weekly 20.3786
Previous Weekly Minimum 19,826
Monthly Prior Maximum 20.5113
Previous Monthly Minimum 19.4131
Daily Fibonacci 38.2% 20.1242
Daily Fibonacci 61.8% 20.1568
Daily Pivot Point S1 20.0642
Daily Pivot Point S2 19.9989
Daily Pivot Point S3 19.9262
Daily Pivot Point R1 20.2021
Daily Pivot Point R2 20.2748
Daily Pivot Point R3 20.3401

Source: Fx Street

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