“USD/MXN continues to oscillate around the 55 day moving average at 19.0484 while remaining above the March and April lows at 18.7482/18.7473 but below the 200 day moving average at 19.0483,” notes Commerzbank analyst Axel Redolph.
“Were the latter to be overcome the next higher February and March highs at 19.4739/19.6215 would be eyed. This resistance area is expected to cap, were it to be hit.”
“Should this not be the case, we would have to turn bullish and would target the early December low at 20.0091. This is not our preferred scenario, however, and instead we expect to see further range trading within the recent Marchto-May extremes.”
“Support below the mid-May low at 18.9789 comes in at the January lows at 18.8842/18.8787 with more significant support being spotted at the March-to-May lows at 18.7908/18.7482. Further down sits the mid-October low at 18.7312.”