- The Mexican peso maintains a bullish tone against the US dollar.
- USD/MXN technical indicators point to a correction or consolidation.
- Consolidation below 18.70 would open the doors towards 18.50.
USD/MXN is rising on Monday after hitting the lowest intraday level in almost three years at 18.73. A weaker US dollar and a positive tone in financial markets are supporting the Mexican peso and emerging market currencies.
Monday’s bounce was capped by the 18.85 zone, the confluence of a flat level, the 20 SMA 4-hour chart, and a downtrend line. A break above would open the door for a deeper correction, in line with some technical indicators. Next resistance lies at 18.90, ahead of the more important area at 19.00/05, which should cap further gains.
In the short term, technical indicators favor stabilization. Momentum well below midlines but heading higher. The RSI is at or near oversold levels and the MACD shows some potential for a deeper correction.
The main trend for the USD/MXN is down. The downtrend so far has found support at the 18.70/75 area. A break down would clear the way down. A break down would clear the way for further losses, targeting the 18.50 area.
USD/MXN 4-hour chart
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technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
