- USD/MXN falls for the fifth day in a row.
- Losses seem limited while above 20.30; dollar strengthens above 20.55.
The USD/MXN falls for the fifth day in a row. The decline found support again around the 20.30 area, which also capped the decline in early July. The mentioned zone is the key support and a consolidation below would clear the way towards the 55-day Simple Moving Average at 20.15. The next support is located at 20.00.
The 20.30 area also contains an uptrend line from the June low, reinforcing the importance of this crucial area.
Technical indicators do not offer clear signals. Momentum and RSI are flat. The price remains below the 20 day simple moving average (20.54) which continues to head north. The bearish bias continues to prevail in the short term, but shows a lack of strength.
A recovery above 20.55 should improve the dollar outlook. The next key resistance is seen at 20.70, that last defense to a retest of 20.90. A daily close above the latter would expose 21.00.
USD/MXN daily chart
-637946222722358294.png)
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
