Home USD/MXN Technical Analysis: Sharp decline to test strong trendline
FXStreet News

USD/MXN Technical Analysis: Sharp decline to test strong trendline

  • The Mexican peso completed four days of gains against the US dollar and accelerated the move today, supported by some positive sentiment toward emerging markets.
  • The USD/MXN pair was rejected last week from above 19.40, yesterday broke under 19.15 and today below 19.00 and the 20-day moving average, all key technical levels.
  • The short-term outlook favors the downside but some consolidation ahead seems likely considering the sharp slide and the importance of the 18.80 area. A break lower would clear the way to more losses with potential targets at 18.70 and 18.50.
  • A modest rebound form 18.80 could be seen before another leg lower if the current bearish pressure eases. Risks are tilted to the downside.

USD/MXN 1-hour chart

USD/MXN

USD/MXN Daily Chart  

USD/MXN

Spot: 18.85
Daily high: 19.05
Daily low: 18.78

Support Levels

S1: 18.80
S2: 18.70
S3: 18.50

Resistance Levels

R1: 18.90
R2: 19.05
R3: 19.20

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.