USD/MXN remains within a range, watch for the 20.10 level

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  • USD/MXN has moved between 20.20 and 19.80 since mid-August.
  • The Mexican peso fails to break 19.80 and falls back.
  • Stocks turn lower on Wall Street, supporting the dollar.

The USD/MXN rises on Thursday amid a stronger US dollar overall. The pair is trading at 20.07, the highest intraday level. Wall Street is turning from neutral to bearish, favoring the dollar.

On the upside, immediate resistance is at 20.10 (highs of 8 and 13 September). A consolidation above could point to further gains and a test of the critical area between 20.17 and 20.20. A daily close above 20.20 would be a positive technical development suggesting further gains ahead, targeting the 20.45 area.

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On the other hand, the first support is located at 19.95, but a more important barrier is found at 19.90. The key zone is 19.80 and a break lower would put USD/MXN on track towards 19.70.

Eyes on the Fed

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Following the numerous US economic reports (jobless claims, retail sales, Philadelphia Fed and industrial production) on Thursday and in particular Tuesday’s CPI, the focus now turns to the FOMC meeting in next week. The central bank is expected to raise interest rates by 75 basis points on Wednesday. Banxico is expected to do the same on September 29.

USD/MXN daily chart

Technical levels

USD/MXN

Panorama
Last Price Today 20.0614
Today’s Daily Change 0.1192
Today’s Daily Change % 0.60
Today’s Daily Opening 19.9422
Trends
20 Daily SMA 20.0249
50 Daily SMA 20.2453
100 Daily SMA 20.1529
200 Daily SMA 20.3075
levels
Previous Daily High 20.0909
Previous Daily Minimum 19.9088
Previous Maximum Weekly 20.1884
Previous Weekly Minimum 19,868
Monthly Prior Maximum 20.8261
Previous Monthly Minimum 19.8019
Daily Fibonacci 38.2% 19.9784
Daily Fibonacci 61.8% 20.0214
Daily Pivot Point S1 19.8704
Daily Pivot Point S2 19.7985
Daily Pivot Point S3 19.6882
Daily Pivot Point R1 20.0525
Daily Pivot Point R2 20.1628
Daily Pivot Point R3 20.2346

Source: Fx Street

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