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USD/MXN Price Analysis: Sharp drop after failing to break 20.25

  • USD/MXN fails to break the critical resistance at 20.25.
  • Below 20.00, the next strong support is found at 19.80.

The USD/MXN is falling sharply on Friday, amid a broad decline in the US dollar. The pair’s decline comes after failing to break a key resistance zone around 20.25.

For now, USD/MXN has bottomed out at 19.92 and is about to test short-term support at 19.90. Technical indicators favor the downside, with the RSI turning lower, as well as Momentum, which remains above 100. The price is back below the 20-day simple moving average.

Since mid-August, the pair has been moving sideways in a range between 19.80 and 20.25. If the 19.80 area is reached, a bounce is likely. A break lower would target the next support around 19.65.

The 20.25 area has become a critical point for the rally. A break above should clear the way for more gains, targeting the 20.45 area initially.

USD/MXN daily chart

Technical levels

USD/MXN

Panorama
Last Price Today 19.9757
Today’s Daily Change -0.2052
Today’s Daily Change % -1.02
Today’s Daily Opening 20.1809
Trends
20 Daily SMA 20.0589
50 Daily SMA 20.2878
100 Daily SMA 20.1676
200 Daily SMA 20.37
levels
Previous Daily High 20.2946
Previous Daily Minimum 20,128
Previous Maximum Weekly 20.2483
Previous Weekly Minimum 19.8495
Monthly Prior Maximum 20.8261
Previous Monthly Minimum 19.8019
Daily Fibonacci 38.2% 20.2309
Daily Fibonacci 61.8% 20.1916
Daily Pivot Point S1 20.1077
Daily Pivot Point S2 20.0346
Daily Pivot Point S3 19.9412
Daily Pivot Point R1 20.2743
Daily Pivot Point R2 20.3677
Daily Pivot Point R3 20.4409

Source: Fx Street

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