Technical analysis

FxPro Forex Analysis: USDMXN

The rise in the USD against the MXN has been halted with a push down from resistance ahead of 21.00000 to the 50 DMA at 19.77420. Today the price is holding under 20.00000 after bouncing from the 50 DMA yesterday. This could be the start of a pattern but it is too early to tell and more data is needed to see whether the uptrend resumes or the selloff deepens. A breakdown of the 50 DMA or yesterday’s low could see selling continue. This would point to a retest of lower levels with the 19.4400 area being supported by the 100 DMA at 19.38127. A slip under this point would bring attention to the 19.14250 level with the 200 DMA close by at 19.08163.

The highs of February and March could see buyers step in around 18.96400/18.96900. A consolidation in this area down to 18.0000 could see a trading range develop further with a move back towards 20.50000 on the horizon. A break out higher above 21.00000 would target the 2017 high just above 22.00000. In the shorter term a turn higher from current levels would test 20.20390 followed by 20.50000 and 20.64170. The recent high remains in place at 20.94630.


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