- USD/MXN continues to move sideways around the 20-day SMA.
- Downside risks prevail as long as it is below 20.10.
- Breaking above 20.25 would open the doors for more gains.
The USD/MXN is rising on Tuesday bouncing from the 19.90 area, currently hovering around the 20.00 mark as financial markets appear to be on hold until the FOMC decision. The Fed’s decision and Powell’s press conference could trigger volatility, weighing on the pair.
Risks in USD/MXN are tilted to the downside in the short term as it remains below 20.10. Immediate support is the 19.90 area. A break lower would expose critical support seen at 19.80. A daily close below would have an initial target of 19.72. Further losses below 19.70 would point to a decline towards 19.50.
To the upside, the pair is facing immediate resistance at 20.10 in the very short term. A break above could lead to a test of the key area seen between 20.20 and 20.25 which contains a horizontal level, a downtrend line and the 200 SMA.
A firm break above 20.25 should favor an acceleration towards 20.45 and shift risks to the upside for the coming weeks.
USD/MXN daily chart
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Technical levels
Source: Fx Street
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