- The Mexican peso loses momentum across the board on Tuesday.
- USDMXN maintains a bearish bias, but strong support prevails at 19.30.
- The dollar faces resistance in the 19.60 area.
The USDMXN trades sideways on Tuesday, after hitting the lowest intraday level since March 2020 at 19.24, following the release of the US Producer Price Index for October. The US dollar reversed sharply after a few minutes and gained momentum across the board. The pair again exceeded 19.30.
The 19.30 zone is critical short-term support. A daily close below keeps the doors open for further losses with the next key zone at 19.00/05 (intermediate support at 19.15). The RSI is moving away from the oversold readings, but is not yet showing a bullish slope. Momentum stays flat.
As long as it is above 19.30, losses look limited for the USDMXN. The outlook remains constructive for the Mexican peso. Only a recovery above 19.60 would ease the bearish tone for the dollar. Prior to that zone, there is resistance at 19.45.
USDMXN daily chart
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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.
