USD/MXN Price Analysis: Testing critical support around 19.30

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  • The Mexican peso is rising again against the US dollar.
  • USD/MXN tests critical support around 19.25/30.
  • The upside remains limited as long as it is below 19.55/60.

The USD/MXN is falling on Wednesday for the second day in a row, amid a weaker US dollar and ahead of the release of the FOMC minutes. The pair is pulling back after the upside was capped by horizontal resistance at 19.60 and the 20-day SMA at 19.55.

USD/MXN recently bottomed at 19.32, the lowest level in six days. So far, the pair has been able to hold above the critical support zone around 19.25/30. Below that zone, the next target is seen at 19.00/05, with intermediate resistance at 19.15.

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Technical indicators turn south again. The RSI is moving lower, but far from the 30 level. The price remains below the key moving averages. A consolidation between 19.30 and 19.60 seems likely in the next few sessions.

The dollar needs to break and hold above 19.60 to improve the outlook. A daily close above would point to further gains towards the next barrier at 19.80.

USDMXN daily chart

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USDMXN

Source: Fx Street

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