- The Mexican peso rises for the fifth day in a row this Monday against the US dollar.
- USD/MXN momentum favors the downside as it approaches the 20.00 zone.
- The 20.25 zone now becomes resistance.
The USD/MXN it continued its decline on Monday and fell to 20.04, reaching the lowest level since April 5th. Bearish signals increased after the pair fell below the 20-day SMA and when Momentum turned further lower below 100. Another negative sign for the pair is the drop below a trend line. short-term bearish.
If the drop continues, it is likely that the USD/MXN challenge the zone of 20.00. The May low at 19.99 is strong support and a break lower could clear the way to 19.90, the next support.
Any bounce below 20.25 should be seen as a corrective move. While a recovery above 20.30 would nullify the current negative bias. Above the critical resistance awaits the level 20.45. A daily close above would be a positive development for the dollar, exposing the 20.70 level.
USD/MXN daily chart
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Technical levels
Source: Fx Street
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