The USD/MXN pair still tumbles towards major support at 19.7002/5488 which is to hold the downside, according to Axel Rudolph, Senior FICC Technical Analyst at Commerzbank.
USD/MXN is getting ever closer to the 200-week moving average at 19.7854
“USD/MXN’s sell-off from its March high at 21.6380 has so far taken it to below the February low at 19.8822 with key support at the 19.7002/19.5488 December and January lows remaining in sight. This area we would expect to hold on the first attempt, though.”
“Resistance above the March low and mid-April high at 20.2426/20.2823 can be seen along the 55-day moving average at 20.4460 with further resistance being spotted between the November 24, December and January highs at 20.6038/20.7191. Further up the 200-day moving average and February high can be seen at 20.8792/21.0483.”
“Only a currently unexpected advance above the next higher 21.6380 March high would push the November high at 21.9803 to the fore. Further up sit the 22.0380 2017 peak and the 22.7011 September 2020 top at 22.7011.”