- USD / MXN hits 20.20 for the first time in a month.
- The pair is moving with a bullish bias, at the 200-day simple moving average.
Deteriorating market sentiment weakened demand for emerging market currencies, including the Mexican peso, which lost ground at a slower pace. The USD/MXN it peaked at 20.20 in European time, reaching the highest level in a month. Then it fell back to 10.20.
The pair is approaching the 20.20 zone again. A consolidation above would point to additional gains, with the next strong resistance seen at 20.30 / 35. Technical indicators favor the rise. Daily RSI is moving north, still far from overbought territory, Momentum is above 100, and price is holding well above the 20- and 55-day moving average. Thursday’s bullish move pushed the price above the 200-day moving average.
A pullback from the current level should find support around 19.97 / 20.00. If the USD / MXN falls below, the bullish bias would be reversed. The next support is at 19.85. A daily close below 19.80, should point to a higher gain for the Mexican peso
Daily USD / MXN chart
Technical levels
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