USD/MXN Price Analysis: Testing 20.00 after reversal

The USD/MXN is rising on Wednesday, moderately, but that is enough for being the best day in weeks. After many days of range consolidation, the cross  |  04/08/2021 17:40
  • Mexican peso fails again to break the 19.80 support and losses momentum.
  • USD/MXN having the best day in weeks needs to hold above 20.00 to improve the bullish outlook.

The USD/MXN is rising on Wednesday, moderately, but that is enough for being the best day in weeks. After many days of range consolidation, the cross is testing the 20.00 zone and levels above 19.95, which matches the 20 and 55-day simple moving averages.

A confirmer break with a close above 20.00, would alleviate the bearish pressure, suggesting more gains ahead. The next relevant obstacle is located around 20.25.

On the flip side, the key short-term support is 19.80; a daily close below would clear the way to more losses, targeting 19.70. If the decline continues, the focus would turn to the 19.50 zone.

In the short term, technical indicators offer neutral to bullish signs. A failure to break 19.95 should favor a correction to the downside, back to the recent range between 19.80 and 19.95.  A weekly close above 20.15 should warn about a potential rally to 20.50, while below 19.70, to 19.45.

USD/MXN daily chart

usdmxn

 

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