- USD/MXN corrects lower after Tuesday’s rally.
- Keep looking for 20.80/21.00, but the signals are mixed.
The USD/MXN is falling sharply, after Tuesday having the best day in weeks. The pair peaked at 20.82 and then started moving lower. The 20.80 area has become a strong barrier and a consolidation above should open the doors to 20.90. Above, attention would focus on 21.00. A daily close above 21.00 would reinforce the bullish outlook.
If the bearish correction continues, a support area emerges at 20.45 and below at 20.25. A break below 20.25 would negate the uptrend, exposing 20.00.
Technical indicators are mixed, with Momentum and RSI hovering around mid-lines, hesitant. The price is close to the 20 and 200-day simple moving averages.
USD/MXN daily chart
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On the weekly chart, USD/MXN is still unable to close above 20.60, which should point to further gains in the medium term.
USD/MXN weekly chart
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Source: Fx Street
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