- Bias in the USD/MXN continues to favor the downside, despite oversold readings.
- In the short-term, a recovery above 19.35/40 would alleviate the pressure.
The USD/MXN pair fell for the fifth-day in-a-row on Tuesday. Short-term technical indicators show extreme oversold reading, but no signals of a consolidation or correction seem strong at the moments, as the pair holds firm below the critical 19.30 level.
On the flip side, 19.20 is the immediate support that is being tested and also the 100-week moving average. Below then comes an uptrend line at 19.05.
On the upside, above 19.40, the bearish pressure will likely ease, and only above 19.60 the US Dollar could strengthen.
USD/MXN weekly chart
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