Search ForexCrunch
  • The Mexican peso is up against the US dollar for the fourth day in-a-row on a quiet session but it is about to finish far from the highs.  
  • The USD/MXN holds a bearish tone but the negative tone is easing, particularly after being unable to hold below 19.00. Today bottomed at 18.96, the lowest in two weeks before bouncing back above the mentioned area. Ahead of Friday, the pair is likely to consolidate between 19.00 and 19.05.

Price is approaching an uptrendline from May lows that stands near 18.90 that is also a horizontal support. A test of 18.90 is expected if the pair continues to slide; a consolidation below 19.00 would be a signal that the test is coming. A firm break below 18.90 would expose 2010 lows at 18.75.  

It the pair moves closer to 18.90 and rebounds, it could anticipate more gains ahead. A rebound to 19.10 seems normal, and above, 19.20 and 19.30 are two critical resistances. A close on top of 19.20 (21-day SMA) would clear the way for a test of the 19.30 barrier that if broken should trigger a rally toward 19.50.  

USD/MXN Daily Chart

USD/MXN