- The Mexican peso gains against the dollar after three days.
- USD/MXN finds resistance at the 20-day SMA ahead of 19.60.
- Provisional support at 19.40, key level at 19.30.
The USD/MXN falls on Tuesday after rising for three consecutive days, in a quiet session for financial markets. The bounce from the monthly lows found resistance near the 19.60 barrier. The pair reversed course after reaching the 20-day SMA.
The ongoing pullback could extend towards the 19.40 intermediate support zone. A break down would expose the critical 19.25/30 zone that capped the fall last week. Below that zone, the next target is at 19.00/05 (intermediate resistance at 19.15).
Technical indicators are mixed. Momentum remains bullish, but the rally begins to turn south. Prices are holding below the key moving averages. A consolidation between 19.30 and 19.60 seems likely in the next few sessions.
If the dollar breaks and holds above 19.60 it would gain strength and could rally to the next barrier at 19.80.
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.
