- USD/MXN holds above 19.90 but faces pressure
- Further losses seem likely while below 20.20.
The USD/MXN rises modestly on Friday but remains below 20.00. The pair found support above 19.80 and bounced back. The move higher so far shows the lack of strength keeping the bias in favor of the Mexican peso.
A consolidation below 19.90 should clear the way for a test of the 19.80 area. A break lower would expose 19.70 an even stronger support zone protecting 19.50.
A recovery above 20.00 could point to more gains and a test of 2017, the convergence of the 20 and 100 SMAs. A daily close above 20.25 should trigger further gains, changing the short-term outlook from bearish to neutral/bullish.
From a broader perspective, USD/MXN is still trading in the 19.50/21.50 range, as it has been since November 2020. A weekly close above 21.00 could suggest a test of 21.50.
USD/MXN daily chart
Source: Fx Street
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