- USD/MXN is back above 20.00 as the dollar strengthens against emerging market currencies.
- The pair reaches the 100-day SMA and pulls back.
- Daily close above 20.25 points to more gains.
The USD/MXN rose for the second day in a row on Tuesday, buoyed by a stronger dollar and extending a bounce after approaching 19.90. The pair reached a high of 20.17, after the release of US economic data, matching the 100-day Simple Moving Average (SMA).
Immediate resistance is at 20.17; above, USD/MXN could rise to test 20.25. A breakout to the upside would change the short-term bias to neutral/bullish. A daily close above 20.25 would mean a positive evolution of the dollar, with the objective of reaching the 20.45 zone.
Since mid-August, the USD/MXN has been moving sideways in a range between 19.80 and 20.25. An interim support area is seen at 19.90. A firm break below 19.80 would further weaken the dollar, exposing it to 19.72.
USD/MXN daily chart
Technical levels
Source: Fx Street
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